Ascot Resources Announces Flow-Through and Common Share C$10 Million Private Placement
February 05 2020 - 6:30AM
Ascot Resources Ltd (TSX: AOT; OTCQX:
AOTVF) (“Ascot” or the “Company”) is pleased to announce a
non-brokered private placement offering (the
“
Offering”) of up to 7,812,500 common shares (the
“
Common Shares”) and up to 5,102,041 flow-through
shares (the “
FT Shares” and together with the
Common Shares, the “
Securities”) for aggregate
gross proceeds of C$10,000,000. Each Common Share is offered at a
price of C$0.64 and each FT Share is offered at a price of C$0.98.
Derek White, President and CEO, commented, “I’m
pleased with the support that Ascot has received from its existing
shareholder base. The flow-through shares raised at a premium to
our current share price reduce dilution and will fund Ascot’s 2020
exploration program. The remaining funding will be utilized to
advance the permitting process and progress the project towards
construction.”
The net proceeds from the Offering will be
primarily used to fund exploration activities, permitting,
engineering and economic studies and for general corporate and
working capital purposes. The gross proceeds from the issuance of
FT Shares will be used for “Canadian exploration expenses”, and
will qualify as “flow-through mining expenditures” as those terms
are defined in the Income Tax Act (Canada), which will be renounced
to the initial purchasers of the FT Shares with an effective date
no later than December 31, 2020 in an aggregate amount not less
than the gross proceeds raised from the issue of the FT Shares.
The Securities issued in the Offering will be
subject to a hold period expiring four months and one day from the
closing date of the Offering.
The closing of the Offering is expected to occur
on or before February 20, 2020 and is subject to certain conditions
including, but not limited to, the receipt of all necessary
regulatory approvals, including the acceptance of the Toronto Stock
Exchange. Agentis Capital Markets Canada Ltd. (“Agentis”) is acting
as financial advisor to Ascot on the Offering. A total fee of up to
6% will be paid from the proceeds raised from the Common
Shares.
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 any of the
securities in the United States of America. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the “1933 Act”) or any state securities
laws and may not be offered or sold within the United States or to,
or for account or benefit of, U.S. Persons (as defined in
Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities laws, or an exemption from such
registration requirements is available.
ON BEHALF OF THE BOARD OF DIRECTORS
OFASCOT RESOURCES LTD.
“Derek C.
White”, President and CEO
For further information
contact:Kristina Howe VP, Investor Relations 778-725-1060
/ khowe@ascotgold.com
About Ascot Resources
Ltd. Ascot is a Canadian-based junior exploration
company focused on re-starting the past producing historic Premier
gold mine, located in British Columbia's Golden Triangle. The
Company continues to define high-grade resources for underground
mining with the near-term goal of converting the underground
resources into reserves, while continuing to explore nearby targets
on its Premier/Dilworth and Silver Coin properties (collectively
referred to as the Premier Gold Project). Ascot's acquisition of
IDM Mining added the high-grade gold and silver Red Mountain
Project to its portfolio and positions the Company as a leading
consolidator of high-quality assets in the Golden Triangle.
For more information about the Company, please
refer to the Company’s profile on SEDAR at www.sedar.com or visit
the Company’s web site at www.ascotgold.com, or for a virtual tour
visit www.vrify.com under Ascot Resources.
The TSX Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding
Forward-Looking Information
All statements, trend analysis and other
information contained in this press release about anticipated
future events or results constitute forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as “seek”, “anticipate”, “believe”, “plan”,
“estimate”, “expect” and “intend” and statements that an event or
result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. All statements, other than
statements of historical fact, included herein are forward-looking
statements, including statements in respect of the closing of the
Offering and the use of proceeds. Although Ascot believes that the
expectations reflected in such forward-looking statements and/or
information are reasonable, undue reliance should not be placed on
forward-looking statements since the Ascot can give no assurance
that such expectations will prove to be correct. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements, including the
risks, uncertainties and other factors identified in the Ascot’s
periodic filings with Canadian securities regulators, and
assumptions made with regard to: the estimated costs associated
with construction of the Premier and RMP Projects; the timing of
the anticipated start of production at the Premier and RMP
Projects; the ability to maintain throughput and production levels
at the Premier Mill. Forward-looking statements are subject to
business and economic risks and uncertainties and other factors
that could cause actual results of operations to differ materially
from those contained in the forward-looking statements. Important
factors that could cause actual results to differ materially from
Ascot’s expectations include risks associated with the business of
Ascot; risks related to exploration and potential development of
Ascot’s projects; business and economic conditions in the mining
industry generally; fluctuations in commodity prices and currency
exchange rates; uncertainties relating to interpretation of drill
results and the geology, continuity and grade of mineral deposits;
the need for cooperation of government agencies and native groups
in the exploration and development of properties and the issuance
of required permits; the need to obtain additional financing to
develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and
other governmental approvals; and other risk factors as detailed
from time to time and additional risks identified in Ascot’s
filings with Canadian securities regulators on SEDAR in Canada
(available at www.sedar.com). Forward-looking statements are based
on estimates and opinions of management at the date the statements
are made. Ascot does not undertake any obligation to update
forward-looking statements.
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