VANCOUVER, March 24, 2020 /PRNewswire/ - Alexco
Resource Corp. (NYSE American: AXU; TSX: AXU) ("Alexco" or
the "Company") has today filed a preliminary prospectus supplement
in connection with an over-night marketed public offering (the
"Offering") of common shares of the Company (the "Common Shares").
The definitive price shall be determined in the context of the
market and the size of the Offering is not to be less than
$5,000,000. It is expected that
Cormark Securities Inc. and a syndicate of underwriters
(collectively the "Underwriters") will enter into a definitive
underwriting agreement with the Company on the successful marketing
of the Offering. The Underwriters also have an option to sell
that number of additional Common Shares equal to 15% of the number
of Common Shares (the "Option Shares") sold pursuant to the
Offering at the offering price for market stabilization purposes
and price to cover over-allotments for a period of 30 days after
the date of Closing provided that the aggregate number of Common
Shares to be issued by the Company pursuant to the Offering.
The proceeds from the sale of the Common Shares will be used for
preservation and measured advancement of mine development activity
at Keno Hill, exploration and for general working capital
purposes.
The Offering will be made by way of a prospectus supplement (the
"Prospectus Supplement") to the Company's existing Canadian base
shelf prospectus (the "Base Shelf Prospectus") and related U.S.
registration statement on Form F-10 (SEC File No. 333-227024) (the
"Registration Statement"). The U.S. form of Base Shelf Prospectus
is included in the Registration Statement. The Prospectus
Supplement has been filed with the securities commissions in each
of the provinces of British
Columbia, Alberta,
Ontario, Saskatchewan and Manitoba and the United States Securities and
Exchange Commission (the "SEC"). The Canadian Prospectus Supplement
(together with the related Canadian Base Shelf Prospectus) is
available on SEDAR at www.sedar.com. The United States Prospectus
Supplement (together with U.S. Base Shelf Prospectus and the
Registration Statement) will be available on the SEC's website at
www.sec.gov. Alternatively, the Canadian Prospectus Supplement
(together with the related Canadian Base Shelf Prospectus) and the
United States Prospectus Supplement (together with the related
United States Base Shelf Prospectus and the Registration Statement)
may be obtained, when available, upon request by contacting the
Company or Cormark Securities Inc. Royal Bank Plaza, North Tower,
Suite 1800, Bay Street, Toronto,
Ontario M5J 2J2.
Closing is expected on or about March 27,
2020 and is subject to regulatory approval including that of
the Toronto Stock Exchange and NYSE American.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities, nor will there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities being offered have not been approved or disapproved
by any regulatory authority, nor has any such authority passed upon
by the accuracy or adequacy of the Prospectus Supplements, the Base
Shelf Prospectuses or the Registration Statement.
About Alexco
Alexco is a Canadian primary silver company that owns the
majority of the historic high-grade Keno Hill Silver District (the
"District") in Canada's
Yukon Territory. Alexco has a long
history of expanding Keno Hill's mineral resources through
successful exploration and is currently advancing a development
plan for the District. Alexco is in the final phase of the
permitting process and is currently advancing key surface
infrastructure while it awaits the final permit to make a positive
construction decision.
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning the
Offering and the use of proceeds thereof, plans related to Alexco's
business and other matters that may occur in the future, made as of
the date of this news release. Forward-looking statements may
include, but are not limited to, statements with respect to the
proposed Offering, anticipated closing of the Offering,
potential exercise by the Underwriter of its option to acquire
Underwriter's Option Shares, and anticipated use of
proceeds. Forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors which
could cause actual events or results to differ from those expressed
or implied by the forward-looking statements. Such factors include,
among others, risks related to regulatory approval of the Offering;
risks and uncertainties relating to the outbreak of COVID-19
including but not limited to business closures, quarantines and a
general reduction in consumer activity; actual results
and timing of exploration and development, mining, environmental
services and remediation and reclamation activities; future
prices of silver, gold, lead, zinc and other commodities; possible
variations in mineral resources, grade or recovery rates; failure
of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
First Nation rights and title; continued capitalization and
commercial viability; global economic conditions; competition; and
delays in obtaining governmental approvals or financing or in the
completion of development activities. Forward-looking statements
are based on certain assumptions that management believes are
reasonable at the time they are made. In making the forward-looking
statements included in this news release, Alexco has applied
several material assumptions, including, but not limited to, the
assumption that regulatory approval of the Offering will be
obtained in a timely manner; all conditions precedent to completion
of the Offering will be fulfilled in a timely manner; Alexco will
be able to raise additional capital as necessary, that the proposed
exploration and development activities will proceed as planned, and
that market fundamentals will result in sustained silver,
gold, lead and zinc demand and prices. There can be no assurance
that forward-looking statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. Alexco expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as otherwise required by applicable securities
legislation.
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SOURCE Alexco Resource Corp.