VANCOUVER, June 7, 2019 /CNW/ - Alexco Resource Corp.
(NYSE AMERICAN: AXU; TSX: AXR) ("Alexco" or the
"Company") is pleased to announce that it has closed the
previously announced bought deal equity financing (the
"Offering") led by Cantor Fitzgerald Canada Corporation as
sole bookrunner and sole underwriter (the "Underwriter").
The Company has issued 6,500,000 common shares (the "Offered
Shares") at a price of US$1.00
for gross proceeds of US$6,500,000.
The Company paid the Underwriter a commission equal to 7.0% of
the gross proceeds of the Offering, plus issued non-transferable
common share purchase warrants in an amount equal to 4.0% of the
number of Offered Shares sold in the Offering (the "Underwriter
Warrants"). Each Underwriter Warrant shall entitle the
Underwriter to purchase one common share of the Company at an
exercise price of US$1.00 for 12
months from the Closing Date.
The Company intends to use the net proceeds of the offering to
fund continuing development of the Keno Hill Silver Project and for
general corporate and working capital purposes.
The Offering was completed by way of a prospectus supplement
(the "Prospectus Supplement") to the Company's existing
Canadian base shelf prospectus (the "Base Shelf Prospectus")
and related U.S. base shelf prospectus included in the Company's
registration statement on Form F-10 (SEC File No. 333-227024) (the
"Registration Statement") filed under the Canada/U.S. multi-jurisdictional disclosure
system.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities, nor will there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities have not been approved or disapproved by any
regulatory authority, nor has any such authority passed upon the
accuracy or adequacy of the Prospectus Supplement, the Base Shelf
Prospectus or the Registration Statement.
About Alexco
Alexco owns the majority of the historic high-grade Keno Hill
Silver District in Canada's
Yukon Territory. Alexco also
operates a wholly-owned subsidiary business, Alexco Environmental
Group, that provides mine-related environmental services,
remediation technologies and reclamation and mine closure services
to both government and industry clients in North America and elsewhere.
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. Forward-looking statements may
include, but are not limited to, statements with respect to the
Offering and 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 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 regulatory
approval of the Offering will be obtained in a timely manner; all
conditions precedent to completion of the Offering will be
fulfilled in a timely 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.
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SOURCE Alexco Resource Corp.