VANCOUVER, BC, Jan. 18, 2022 /PRNewswire/ - 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") pursuant to which the Underwriters have
agreed to purchase on a bought deal basis (i) 1,851,900 common
shares to be issued as "flow-through shares" with respect to
"Canadian exploration expenses" ("CEE") within the meaning
of the Income Tax Act (Canada) and
the regulations thereunder in force as of the date hereof (the
"Tax Act") (the "CEE Flow-Through Shares") at
a price of C$2.70 per CEE
Flow-Through Share (the "CEE Offering Price"); and
(ii) 1,287,600 common shares to be issued as "flow-through shares"
with respect to"Canadian development expenses" ("CDE")
within the meaning of the Tax Act (the "CDE Flow-Through
Shares") at a price of C$2.33 per
CDE Flow-Through Share (the "CDE Offering Price")
(collectively, the "Offering"). The gross proceeds of the
Offering will be approximately C$8.0
million.
The Underwriters also have an option to purchase that
number of additional CEE Flow-Through Shares and CDE Flow-Through
Shares as is equal to 15% of the number of CEE Flow-Through Shares
and CDE Flow-Through Shares sold pursuant to the Offering at the
CEE Offering Price and CDE 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 CEE Flow-Through Shares will
be used on exploration expenses on the Keno Hill project as
permitted under the Tax Act to qualify as CEE. The proceeds from
the sale of the CDE Flow-Through Shares will be used on development
expenses on the Keno Hill project as permitted under the Tax Act to
qualify as CDE. The Company will renounce all the CEE
qualifying expenditures in favour of the subscribers of the CEE
Flow-Through Shares and all CDE qualifying expenditures in favour
of the subscribers of the CDE Flow-Through Shares effective on or
before December 31, 2022.
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 January
27, 2022 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 orsold, 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 commercial production and commenced concentrate production
and shipments in the first quarter of 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.
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 use of proceeds thereof and the tax
treatment of the CEE Flow-Through Shares and the CDE Flow-Through
Shares. 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.
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SOURCE Alexco Resource Corp.
