pcNewsWire – Alexco Resource Corp. (TSX: AXR; NYSE MKT: AXU) has engaged Canaccord Genuity Corp. for a bought deal of 2,325,600 flow-through common shares at a price of CDN $2.15 per FT share for gross proceeds of CDN $5,000,040. Proceeds to be used on company’s Keno Hill District exploration properties.
Alexco Announces C$5 Million Flow-Through Equity Financing
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VANCOUVER, May 8, 2017 /CNW/ – Alexco Resource Corp. (TSX:AXR, NYSE‑MKT:AXU) (“Alexco” or the “Company”) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (the “Underwriter”), pursuant to which the Underwriter has agreed to purchase, on a bought deal basis 2,325,600 flow-through common shares (the “Flow-Through Shares”) at a price of C$2.15 per Flow-Through Share for aggregate gross proceeds of C$5,000,040 (the “Underwritten Offering”). In addition, the Company will grant the Underwriter an over-allotment option, exercisable prior to the closing of the Underwritten Offering, to purchase from the Company, Flow-Through Shares to raise additional proceeds of up to C$2,042,500 (the “Over-Allotment Option”, and together with the Underwritten Offering, the “Offering”).
The Underwriter will receive a cash commission on the sale of the securities, representing 6% of the aggregate gross proceeds raised, including that number of broker warrants (“Broker Warrants”) as is equal to 3% of the number of Flow-Through Shares sold under the Offering. Each Broker Warrant shall be exercisable for one common share of the Company at a price of C$2.15 at any time up to 24 months after closing.
The net proceeds from the sale of the Flow-Through Shares will be used for expenditures on the Company’s Keno Hill District exploration properties, which qualify as Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)). The Company will renounce such Canadian exploration expenses with an effective date of no later than December 31, 2017. With completion of this Offering, the Company is fully funded for all planned 2017 expenditures.
Closing of the Offering is anticipated to occur on or around May 30, 2017 and is subject to certain conditions including, but not limited to, the receipt of all applicable regulatory approvals including approval of the Toronto Stock Exchange and NYSE MKT LLC.
Alexco Resource Corp. owns the Bellekeno silver mine, one of several mineral properties held by Alexco which encompass substantially all of the historical Keno Hill Silver District located in Canada’s Yukon Territory. Employing a unique business model, Alexco also provides mine-related environmental services, remediation technologies and reclamation and mine closure services to both government and industry clients through the Alexco Environmental Group, its wholly-owned environmental services division.
SOURCE Alexco Resource Corp.
For further information: Clynton R. Nauman, Executive Chairman and Chief Executive Officer, Mike Clark, Chief Financial Officer, Phone: (604) 633-4888, Email: firstname.lastname@example.org