(All amounts expressed in Canadian Dollars
unless otherwise indicated)
VANCOUVER, BC, Jan. 27, 2022 /PRNewswire/ - Alexco
Resource Corp. (NYSE American: AXU) (TSX:
AXU) ("Alexco" or the "Company") announces that
it has closed the previously announced flow-through bought deal
public offering (the "Offering") with a syndicate of
underwriters led by Cormark Securities Inc. and including
Canaccord Genuity Corp., A.G.P./Alliance Global Partners and Roth
Canada, ULC (collectively the "Underwriters"). With full
exercise of the Underwriters' over-allotment option, the Company
has issued a total of 3,610,425 "flow-through" common shares (the
"Flow-Through Shares") for gross proceeds of C$9,200,273.70.
The Flow-Through Shares are comprised of (i) 2,129,685 shares
issued as "flow-through shares" (the "CEE Shares") with
respect to "Canadian exploration expenses" ("CEE") within
the meaning of the Income Tax Act (Canada) (the "Tax Act") at a price of
C$2.70 per CEE Share; and (ii)
1,480,740 shares issued as "flow through shares" (the "CDE
Shares") with respect to "Canadian development expenses"
("CDE") at a price of C$2.33
per CDE Share.
The gross proceeds from the sale of the CEE Shares will be used
on exploration expenses on the Keno Hill project as permitted under
the Tax Act to qualify as CEE. The gross proceeds from the sale of
the CDE 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 and CDE in favour of the
subscribers of the CEE Shares and CDE Shares, respectively,
effective on or before December 31,
2022, all as further described in the Prospectus (as defined
below) as filed on the Company's profile on www.sedar.com.
The Offering was completed pursuant to a prospectus supplement
dated January 20, 2022 to the short
form base shelf prospectus of the Company dated November 2, 2020 (collectively, the
"Prospectus") in the provinces of British Columbia, Ontario, Alberta, Saskatchewan, and Manitoba.
The securities 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 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.
Certain 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
the intended use of proceeds from the sale of the Flow-Through
Shares and the tax treatment of the 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 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 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.
