(All amounts expressed in Canadian Dollars
unless otherwise indicated)
VANCOUVER, BC, Jan. 28, 2021 /PRNewswire/ - Alexco
Resource Corp. (NYSE American: AXU) (TSX:
AXU) ("Alexco" or the "Company") announces that
it has closed the previously announced flow-through bought deal
public offering (the "Offering") with a syndicate of
underwriters co-led by Cormark Securities Inc. and Cantor
Fitzgerald Canada Corporation as joint bookrunners, and including
R.F. Lafferty & Co. Inc. and A.G.P./Alliance Global Partners
(collectively the "Underwriters"). With full exercise of the
Underwriters' over-allotment option, the Company has issued a total
of 2,704,770 "flow-through" common shares (the "Flow-Through
Shares") for gross proceeds of $11,700,666.
The Flow-Through Shares are comprised of (i) 2,053,670 shares
issued as "flow-through shares" with respect to "Canadian
exploration expenses" (the "CEE Shares") within the meaning
of the Income Tax Act (Canada) (the "Tax Act") at a price of
C$4.48 per CEE Share; and (ii)
651,100 shares issued as "flow through shares" with respect to
"Canadian development expenses" (the "CDE Shares") at a
price of C$3.84 per CDE Share.
The gross proceeds from the sale of the CEE Shares will be used
on exploration expenses on the Keno Hill project as permitted under
the Tax Act to qualify as CEE. The proceeds from the sale of the
CDE Shares will be used on development expenses on the Keno Hill
project as permitted under the Tax Act to qualify as CDE. The
Company will renounce all the CEE qualifying expenditures and CDE
development expenses in favour of the subscribers of the CEE
Flow-Through Shares and CDE Flow-Through Shares effective on or
before December 31, 2021.
The securities offered have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or under any securities
laws of any state of the United
States, and may not be offered or sold, directly or
indirectly, or delivered within the
United States or to, or for the account or benefit of,
a U.S. person or person in the United
States, except in certain transactions exempt from the
registration requirements of the U.S. Securities Act and any
applicable securities laws of any state of the United States. This release does not
constitute an offer to sell or a solicitation to buy such
securities in the United States,
Canada or in any other
jurisdiction where such offer, solicitation or sale is unlawful.
"United States" and "U.S. person" are as defined in Regulation S
under the U.S. Securities Act.
About Alexco
Alexco is a Canadian primary silver company that owns and
operates the majority of the historic Keno Hill Silver District, in
Canada's Yukon Territory, one of the highest-grade
silver deposits in the world. Alexco is currently advancing Keno
Hill to production and commenced concentrate shipments in January,
2021. As per Alexco's 2020 pre-feasibility study, Keno Hill is
expected to produce an average of approximately 4 million ounces of
silver per year contained in high quality lead/silver and zinc
concentrates. Total production over an 8-year mine life is
estimated at 1.18 million tonnes of ore at an average rate of 430
tonnes per day at an average grade of 805 grams per tonne. Keno
Hill retains significant potential to grow and Alexco has a long
history of expanding the operation's Mineral Resources through
successful exploration.
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning plans
related to Alexco's business and other matters that may occur in
the future, made as of the date of this news release including the
intended use of proceeds from the sale of the Flow-Through Shares
and the tax treatment of the Flow-Through Shares. 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 legislative and/or regulatory changes; risks and
uncertainties relating to the COVID-19 pandemic including but not
limited to business closures, travel restrictions,
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
assumptions that 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; that
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.
View original
content:http://www.prnewswire.com/news-releases/alexco-closes-11-7-million-flow-through-equity-financing-301217402.html
SOURCE Alexco Resource Corp.