VANCOUVER, June 10, 2021 /PRNewswire/ - Alexco Resource
Corp. (NYSE American: AXU) (TSX: AXU) ("Alexco" or the
"Company") is pleased to announce that it has closed the
previously announced bought deal public offering (the
"Offering") with a syndicate of underwriters (the
"Underwriters") co-led by Cormark Securities Inc. and Cantor
Fitzgerald Canada Corporation and including R.F. Lafferty
& Co., Inc., A.G.P./Alliance Global Partners and Roth Capital
Partners, LLC (collectively the "Underwriters"). With full
exercise of the Underwriters' over-allotment option, the Company
has issued a total of 8,214,450 common shares (the
"Shares") at a price of C$3.50 per Share (the "Offering Price")
for gross proceeds of $28,750,575.
In connection with the Offering, the Company has paid the
Underwriters a cash commission equal to 1.5% on approximately
$2.875 million of the aggregate gross
proceeds (representing the proceeds raised from sales to members of
the President's List) and a cash commission equal to 5.0% on the
remaining gross proceeds of approximately $25.875 million.
The net proceeds from the sale of the Shares will be used for
development and site expenditures at Keno Hill and for general
corporate and working capital purposes, as set out in more detail
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 June 7, 2021 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, in the
United States on a private placement basis pursuant to an
exemption from the registration requirements of the U.S. Securities
Act of 1933, as amended (the "U.S. Securities Act") and
applicable state securities laws and other jurisdictions outside of
Canada and the United States on an exempt basis.
The securities offered have not been and will not be registered
under 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 the
intended use of proceeds. 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, 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.
