(All amounts expressed in
Canadian Dollars unless otherwise indicated)
VANCOUVER, BC, June 24, 2020 /PRNewswire/ - Alexco
Resource Corp. (NYSE American/TSX: AXU) ("Alexco"
or the "Company") is pleased to announce that it has entered
into an agreement with a syndicate of underwriters (the
"Underwriters"), pursuant to which the Underwriters have
agreed to purchase, on a bought deal basis, 7,326,100 common shares
of the Company (the "Offered Shares") at a price of
$2.73 per Offered Share for aggregate
gross proceeds of $20,000,253 (the "Offering").
The Company has granted the Underwriters an over-allotment
option (the "Over-allotment Option"), exercisable in whole
or in part, on and for a period up to 30 days following the Closing
Date (as defined below), to purchase up to an additional 1,098,915
Offered Shares (the "Underwriter's Option Shares").
The Company shall pay the Underwriters a commission equal to 6%
of the gross proceeds of the Offering, including proceeds received
from the exercise of the Over-Allotment Option, subject to a 1.5%
cash commission being payable on sales to members of the
President's List, such President's List to not exceed $7.5 million. The Company is pleased to
announce that a lead order from Wheaton Precious Metals Corp. in
the amount of $5,000,000 was obtained
in relation to the President's List.
Gross proceeds from the sale of the Offered Shares will be used
to fund continuing development at Keno Hill and for general
corporate and working capital purposes.
The closing of the Offering is expected on or about July 7, 2020 (the "Closing Date") and is
subject to customary closing conditions including regulatory
approval from the Toronto Stock Exchange and NYSE American.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any securities laws of any
state of the United States and may
not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons
(as defined in Regulation S under the U.S. Securities Act) unless
registered under the U.S. Securities Act and applicable state
securities laws or pursuant to an exemption from such registration
requirements.
About Alexco
Alexco is a Canadian primary silver company that owns the
majority of the historic high-grade Keno Hill Silver 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 Keno Hill to production.
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning the
proposed Offering, anticipated closing of the Offering,
potential exercise by the Underwriters of their Over-allotment
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 COVID-19
pandemic 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, all regulatory approvals 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; that the circumstances surrounding the COVID-19
pandemic, although evolving, will stabilize or at least not worsen;
that the extent to which COVID-19 may impact the Company, including
without limitation disruptions to the mobility of Company
personnel, costs associated with implementation of health and
safety protocols, increased labour and transportation costs, and
other related impacts, will not change in a materially adverse
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.