pcNewsWire – Alexco Resource Corp. (TSX: AXR; NYSE-MKT: AXU) has closed previously announced private placement of 4,205,820 flow-through common shares at CDN $2.15 per FT share for gross proceeds CDN $9,042,513.
Canaccord Genuity Corp. acted as agent for the offering.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Alexco Closes C$9 Million Flow-Through Equity Financing
May 30, 2017 – Alexco Resource Corp. (TSX:AXR, NYSE-MKT:AXU) (“Alexco” or the “Company”) announces that it has closed the previously announced flow-through private placement (the “Offering”) with Canaccord Genuity Corp. (“Canaccord Genuity”). With full subscription of the over-allotment option and increase to the deal announced previously, the Company has issued a total of 4,205,820 flow-through common shares (the “Flow-Through Shares”) at a price of C$2.15 per share for gross proceeds C$9,042,513.
In connection with the Offering, the Company has paid Canaccord Genuity a cash commission equal to 6% of the gross proceeds from the sale of the Flow-Through Shares. Canaccord Genuity also received 126,174 warrants, being that number of warrants equal to 3% of the number of Flow-Through Shares sold. Each warrant entitles the holder to acquire one non-flow-through common share of the Company at a price of C$2.15 until May 30, 2019.
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.
Certain directors and senior officers of the Company participated in the Offering by purchasing an aggregate of 66,730 Flow-Through Shares. Accordingly, the Offering constituted to that extent a “related party transaction” under applicable Canadian securities laws. The Company did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
The Flow-Through Shares issued under the Offering are subject to a hold period and may not be traded until October 1, 2017 except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.
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.
Clynton R. Nauman, Chairman and Chief Executive Officer
Mike Clark, Chief Financial Officer
Phone: (604) 633-4888
SOURCE: Alexco Resource Corp.