/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES OR TO A U.S. PERSON/
VANCOUVER, BC, June 3, 2021 /CNW/ - Alexco Resource Corp. (NYSE
American: AXU) (TSX: AXU) ("Alexco" or the "Company")
is pleased to announce that it has entered into an agreement with a
syndicate of underwriters (the "Underwriters") co-led by
Cormark Securities Inc. and Cantor Fitzgerald Canada Corporation
pursuant to which the Underwriters have agreed to purchase on a
bought deal basis 7,143,000 common shares of the Company (the
"Shares") at a price of C$3.50
per Share (the "Offering Price") for aggregate gross
proceeds of approximately C$25
million (the "Offering").
The Underwriters also have an option to purchase that number of
additional Shares equal to 15% of the number of Shares sold
pursuant to the Offering at Offering Price, for market
stabilization purposes and to cover over-allotments for a period
expiring 30 days after the date of closing.
The proceeds from the sale of the Shares will be used to fund
continuing development at Keno Hill and for general corporate and
working capital purposes in a manner to be set forth in the
Prospectus Supplement (as defined below).
The Offering will be qualified by way of a prospectus supplement
(the "Prospectus Supplement") to the Company's existing base
shelf prospectus in the provinces of British Columbia, Alberta, Ontario, Saskatchewan and Manitoba. The Prospectus Supplement (together
with the related Base Shelf Prospectus) will be available on SEDAR
at www.sedar.com.
Closing is expected on or about June 10,
2021 and is subject to Toronto Stock Exchange and other
necessary regulatory approvals.
The securities to be offered have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or under any securities
laws of any state of the United
States, and may not be offered or sold, directly or
indirectly, or delivered within the
United States or to, or for the account or benefit of,
a U.S. person or person in the United
States, except in certain transactions exempt from the
registration requirements of the U.S. Securities Act and any
applicable securities laws of any state of the United States. This release does not
constitute an offer to sell or a solicitation to buy such
securities in the United States,
Canada or in any other
jurisdiction where such offer, solicitation or sale is unlawful.
"United States" and "U.S. person" are as defined in Regulation S
under the U.S. Securities Act.
About Alexco
Alexco is a Canadian primary silver company that owns and
operates the majority of the historic Keno Hill Silver District, in
Canada's Yukon Territory, one of the highest-grade
silver deposits in the world. Alexco is currently advancing Keno
Hill to production and started concentrate production and shipments
in Q1 2021. Keno Hill is expected to produce an average of
approximately 4.4 million ounces of silver per year contained in
high quality lead/silver and zinc concentrates. Keno Hill retains
significant potential to grow and Alexco has a long history of
expanding the operation's mineral resources through successful
exploration.
Please visit the Alexco website at www.alexcoresource.com
Some statements ("forward-looking statements") in this
news release contain forward-looking information concerning plans
related to Alexco's business and other matters that may occur in
the future, made as of the date of this news release including
closing of the Offering, the exercise of the over-allotment option
and the use of proceeds thereof. 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 regulatory
approval of the Offering and legislative and/or regulatory changes;
risks and uncertainties relating to the COVID-19 pandemic including
but not limited to business closures, travel restrictions,
quarantines and a general reduction in consumer activity;
actual results and timing of exploration and development, mining,
environmental services and remediation and reclamation activities;
future prices of silver, gold, lead, zinc and other commodities;
possible variations in mineral 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, Alexco has applied
several material assumptions, including, but not limited to, the
assumptions that all regulatory approvals of the Offering will be
obtained and all conditions precedent to completion of the Offering
will be fulfilled in a timely manner; that circumstances
surrounding the COVID-19 pandemic, although evolving, will
stabilize or at least not worsen; that the extent to which COVID-19
may impact the Company, including without limitation disruptions to
the mobility of Company personnel, costs associated with
implementation of health and safety protocols, increased labour and
transportation costs, and other related impacts, will not change in
a materially adverse manner; that Alexco will be able to raise
additional capital as necessary, that the proposed exploration and
development activities 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. Alexco 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.
