VANCOUVER, March 25, 2020 /CNW/ - Alexco Resource Corp.
(NYSE AMERICAN: AXU; TSX: AXU) ("Alexco" or the
"Company") is pleased to announce that further to its
previously announced over-night marketed public offering (the
"Offering") of common shares of the Company (the "Common Shares"),
it has entered into an underwriting agreement with a syndicate of
underwriters co-led by Cormark Securities Inc. and Cantor
Fitzgerald Canada Corporation, and including Canaccord Genuity
Corp. (collectively the "Underwriters") to sell 4,054,500 Common
Shares at a price of $1.85 per
share (the "Offering Price") for gross proceeds of
$7.5 million. The Company has granted
to the Underwriters an option (the "Over-Allotment Option"),
exercisable in whole or in part, in the sole discretion of the
Underwriters, for a period of 30 days from and including the
closing of the Offering, to purchase up to an additional 608,175
Common Shares ("Option Shares") at the Offering Price. If the
Over-Allotment Option is exercised in full, the total gross
proceeds to the Company will be $8.6
million.
The Company shall pay the Underwriters a commission equal to
6.0% of the gross proceeds of the Offering, including proceeds
received from the exercise of the Over-Allotment Option, if
any.
The Company intends to use the net proceeds of the Offering 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 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 Underwriters of their option to acquire 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.