VANCOUVER, Aug. 21,
2014 /PRNewswire/ - Alexco Resource Corp. (TSX:AXR,
NYSE‑MKT:AXU) ("Alexco" or the "Company") is pleased to
announce that it has closed its previously announced bought deal
public offering of units (the "Offering").
The Company issued 6,100,000 units
("Units") at a price of C$1.15
per Unit for gross proceeds of C$7,015,000. Each Unit consists of one
common share of the Company and one half of one common share
purchase warrant (each whole common share purchase warrant, a
"Warrant"). Each Warrant is exercisable to purchase
one common share of the Company at an exercise price of
C$1.40 on or before August 21, 2016.
The Company granted the underwriter an
over-allotment option to purchase (i) up to 915,000 additional
Units, (ii) up to 457,500 additional Warrants, or (iii) a
combination of both, provided the maximum number of securities
issued does not exceed 15% of the Offering, for a period of 30 days
after and including the closing date of the Offering, to cover
over-allotments and for market stabilization purposes.
The underwriter received a cash fee equal to 6.5%
of the gross proceeds from the Offering and 396,500 compensation
warrants (the "Compensation Warrants"), with each
Compensation Warrant exercisable for one common share of the
Company at an exercise price of C$1.35 on or before August
21, 2016.
The net proceeds from the Offering will be used
by the Company for exploration and development activities on the
Company's Flame & Moth deposit and for general working capital
purposes.
Further details regarding the Offering are
contained in the Company's short form prospectus dated
August 15, 2014.
About Alexco
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.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill Silver
District was a world-class silver producer, with more than 217
million ounces of silver produced at average grades of 40.5 ounces
per ton silver, 5.6% lead and 3.1% zinc (Yukon Government's Minfile
database). These historical production grades would rank
Keno Hill in the top 3% by grade of
today's global silver producers.
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.
Some statements ("forward-looking statements")
in this news release contain forward-looking information
concerning the anticipated use of proceeds from the
Offering, the potential exercise by the underwriter of the
over-allotment option, the Company's planned exploration and
development activities of its properties, and future mine
operation and production. 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 Alexco's
ability to raise additional capital; actual results and timing of
exploration and development activities; actual results and timing
of mining activities; actual results and timing of environmental
services activities; actual results and timing of remediation and
reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined;
future prices of silver, gold, lead, zinc and other commodities;
possible variations in mineable 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, the
Company has applied several material assumptions, including, but
not limited to, the assumption that the proceeds from the Offering
will be spent as allocated, that the Company will be able to raise
additional capital, that the proposed exploration and development
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.
The Company 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.
SOURCE Alexco Resource Corp.