VANCOUVER, May 30, 2017 /PRNewswire/ - 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 an
underwriter (the "Underwriter"). 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 the
Underwriter a cash commission equal to 6% of the gross proceeds
from the sale of the Flow-Through Shares. The Underwriter 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.
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.
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 Offering
and the use of proceeds thereof, the Company's anticipated results
and developments in the Company's operations in future periods,
planned exploration and development of its properties, plans
related to its 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 anticipated use of proceeds from the
Offering and future exploration and development activities.
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 conditions precedent to closing of
the Offering, including regulatory approval of the Offering, not
being satisfied in a timely manner or at all; 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 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.