Ascot Resources Announces C$25 Million Bought Deal Financing
May 27 2020 - 7:16AM
Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF)
(“
Ascot” or
the “
Company”) is pleased to announce that it has
entered into an agreement with a syndicate of underwriters (the
“Underwriters”) led by Desjardins Capital Markets and Stifel GMP,
pursuant to which the Underwriters have agreed to purchase, on a
bought‐deal basis, 29,412,000 common shares of the Company
(“Shares”) at a price of C$0.85 per Share for aggregate gross
proceeds to the Company of C$25.0 million (the “Offering”).
The Underwriters have been granted an option
(the “Over‐Allotment Option”), exercisable in whole or in part, at
any time within 30 days following the closing of the Offering, to
purchase from the Company up to an additional 15% of the Shares
offered under the Offering.
The Company will pay the Underwriters a cash
commission of 5.0% of the gross proceeds of the Offering, including
any proceeds realized on exercise of the Over-Allotment Option,
subject to a 1.0% cash commission being payable on sales to members
of the president’s list (the “President’s List”), such President’s
List to not exceed $1.0 million.
The net proceeds of the Offering will be used
for the continued development of the Company’s Premier Gold
Project, including the purchase of long lead time equipment and for
general working capital purposes.
The Offering is scheduled to close on or about
June 17, 2020 and is subject to a number of conditions, including
receipt of all necessary securities regulatory approvals and the
approval of the Toronto Stock Exchange (“TSX”).
The Offering is being made pursuant to a short
form prospectus to be filed in the provinces of British Columbia,
Alberta and Ontario and may be offered in the United States to
Qualified Institutional Buyers pursuant to exemptions from the
registration requirements under Rule 144A of the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”), in
a manner that does not require the Offering to be registered in the
United States. The Offering may be also sold in such other
jurisdictions as the Company and the Underwriters may agree.
This news release shall not constitute an offer
to sell or the solicitation of an offer to buy the securities, nor
shall there be any sale of the securities, in any jurisdiction in
which such offer, solicitation or sale would be unlawful. The
securities have not been and will not be registered under the U.S.
Securities Act, and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirement.
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 exploration and
development 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 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
Private Placement 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 Project; the timing of
the anticipated start of production at the Projects; the ability to
maintain throughput and production levels at the Premier Mill; the
tax rate applicable to the Company; future commodity prices; the
grade of Resources and Reserves; the ability of the Company
to convert inferred resources to other categories; the ability of
the Company to reduce mining dilution; the ability to reduce
capital costs. 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 indigenous 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; risks associated with COVID-19
including adverse impacts on the world economy, construction timing
and the availability of personnel; 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). The timing of future economic
studies; labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals, financing or in the
completion of Project as well as those factors discussed in the
Annual Information Form of the Company dated March 13, 2020
in the section entitled "Risk Factors", under Ascot’s SEDAR profile
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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