Ascot Announces Closing Of C$10.3 Million Private Placement
February 25 2020 - 4:35PM
Ascot Resources Ltd (TSX: AOT; OTCQX:
AOTVF) (“Ascot” or the “Company”) is pleased to announce
that further to its press release of February 5 2020, it has closed
the non-brokered private placement (the
“
Offering”) of 5,126,250 flow-through shares (the
“
Flow-Through Shares”) at a price
of C$0.98 per Flow-Through Share, and 8,170,588 common
shares (the “
Common Shares” and together with the
Flow-Through Shares, the “
Securities”) at a price
of C$0.64 for aggregate gross proceeds of C$10.3 Million.
Derek White, President and CEO, commented,
“Ascot will use the proceeds from the flow-through shares for the
2020 exploration program at its properties near Stewart, British
Columbia. The remaining non-flow-through proceeds will be used for
engineering studies, permitting, and general corporate purposes in
support of the Company’s efforts towards re-starting the mining
operations at the Premier Gold Project.”
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
Flow-Through 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 Flow-Through
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 Flow-Through Shares.
The Securities issued in the Offering are
subject to a statutory hold period expiring four months and one day
from the closing date of the Offering. In connection with the
Offering, the Company paid a cash fee equal to 6.2% of the proceeds
from the sale of Common Shares and Flow-through Shares to advisors
and finders.
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 InformationAll 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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