(All amounts expressed in Canadian Dollars
unless otherwise indicated)
VANCOUVER, BC, July 7, 2020 /PRNewswire/ - Alexco
Resource Corp. (NYSE American: AXU) (TSX: AXU) ("Alexco"
or the "Company") announces that it has closed the
previously announced public offering (the "Offering") of
common shares of the Company (the "Common Shares"), with
a syndicate of underwriters (the
"Underwriters"). With full subscription of the
over-allotment option, the Company has issued 10,994,000 Common
Shares at a price of $2.73 per share
(the "Offering Price") for gross proceeds of $30,013,620.
In connection with the Offering, the Company has paid the
Underwriters a cash commission equal to 1.5% on $10 million out of the aggregate gross proceeds
(representing the proceeds raised from sales to members of the
President's List) and 6.0% on the remaining proceeds of
approximately $20 million.
The Company intends to use the net proceeds of the Offering to
fund continuing development at Keno Hill and for general corporate
and working capital purposes.
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. In
2019, the Company published a positive pre-feasibility study that
estimates production of 1.18 million tonnes of ore at an average
rate of 430 tonnes per day at an average grade of 805 grams per
tonne silver over an 8-year mine life from the Flame & Moth,
Bermingham, Bellekeno and Lucky Queen deposits. Keno Hill has
excellent potential to continue growing through continued
exploration of the known deposits and other highly prospective
areas in the District.
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning the
Offering and the use of proceeds thereof, plans related to Alexco's
business and other matters that may occur in the future, made as of
the date of this news release. The forward-looking statements
herein may include, but are not limited to, statements with respect
to the 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 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 Water Use License ("WUL") will be issued in a timely manner
on substantially the same terms and conditions as set out in the
draft WUL; 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.
View original
content:http://www.prnewswire.com/news-releases/alexco-closes-30-million-common-share-equity-financing-301089166.html
SOURCE Alexco Resource Corp.