/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR DISSEMINATION IN THE U.S./
(All amounts expressed in Canadian Dollars
unless otherwise indicated)
VANCOUVER, BC, June 24, 2020 /CNW/ - Alexco Resource
Corp. (NYSE American: AXU) (TSX: AXU) ("Alexco" or
the "Company") is pleased to announce that in connection
with its previously announced bought deal financing, the Company
and a syndicate of underwriters co-led by Cormark Securities Inc.
and Cantor Fitzgerald Canada Corporation (collectively, the
"Underwriters") have agreed to increase the size of the
previously announced financing. The Company will now issue
9,560,000 common shares of the Company (the "Offered
Shares") at a price of $2.73 per
Offered Share for aggregate gross proceeds of $26,098,800 (the "Offering").
The Company and the Underwriters have also agreed to increase
the over-allotment option granted to the Underwriters (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 1,434,000 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
$10 million.
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
Offering and the use of proceeds thereof, the non-binding Term
Sheet with Wheaton, 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 anticipated receipt of
the WUL; the proposed amendments to the silver purchase streaming
agreement with Wheaton; plans with respect to development and
operations at the Keno Hill project; compliance with
health and safety protocols as well as the guidelines of
the Yukon Government with respect to travel restrictions; 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, the assumption that the final WUL
will be issued in a timely manner on substantially the same terms
and conditions as set out in the draft WUL; all conditions
precedent to the entry into an amended and restated agreement with
Wheaton as contemplated in the non-binding Term Sheet will be
satisfied as anticipated and in a timely manner; all regulatory
approvals of the issuance of Warrants to Wheaton will be obtained
in a timely manner; 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.
SOURCE Alexco Resource Corp.