Alexco Resource Corp. Announces Increase to Bought Deal Offering of Flow-Through Shares
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
June 4, 2018 – Alexco Resource Corp. (NYSE AMERICAN: AXU, TSX: AXR) (“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 led by Cormark Securities Inc., (the “Underwriters”) have agreed to increase the size of the previously announced financing. The Company will now issue 4,703,000 flow-through common shares (“Flow-Through Shares”) at a blended price of approximately C$1.92 per Flow-Through Share for aggregate gross proceeds of C$9,041,150 (the “Offering”).
The issued securities are comprised of: (i) 966,500 flow-through shares with respect to “Canadian exploration expenses” priced at $2.05 per Flow-Through Share; (ii) 1,736,500 flow-through shares with respect to “Canadian exploration expenses” that also qualify as “flow-through mining expenditures” priced at $2.05 per Flow-Through Share; and (iii) 2,000,000 flow-through shares with respect to “Canadian development expenses” priced at $1.75 per Flow-Through Share.
Gross proceeds from the sale of the Flow-Through Shares will be used to fund a surface exploration program, continue the underground drilling program at the Bermingham deposit, and also continue development of the Flame & Moth decline at the Company’s Keno Hill Silver project by incurring qualified expenditures.
The Flow-Through Shares to be issued under the Offering will be offered in accordance with the terms of a prospectus supplement to be filed in British Columbia, Alberta, Ontario, Saskatchewan and Manitoba.
Closing is expected on or about June 13, 2018 and is subject to regulatory approval including that of the Toronto Stock Exchange and NYSE American LLC.
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.
Alexco Resource Corp. holds the historical high grade 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, Executive Chairman and Chief Executive Officer
Lisa May, Director of Investor Relations
Phone: (778) 945-6577