Alexco Announces Terms of Equity Financing
January 20 2010 - 9:24AM
PR Newswire (US)
VANCOUVER, Jan. 20 /PRNewswire-FirstCall/ -- Alexco Resource Corp.
(TSX:AXR, NYSE-AMEX:AXU) ("Alexco" or the "Company") is pleased to
announce that in connection with its overnight marketed public
offering previously announced on January 19, 2010 (the "Offering"),
it has entered into an underwriting agreement with Canaccord
Financial Ltd. and Cormark Securities Inc. (the "Underwriters") to
sell 7,350, 000 common shares in the Company ("Common Shares") at a
price of C$3.50 per Common Share to raise gross proceeds of
C$25,725,000 pursuant to a short form prospectus under the
multi-jurisdictional disclosure system. In addition, the Company
has granted the Underwriters an over-allotment option to purchase
up to that number of additional Common Shares equal to 15% of the
Common Shares sold pursuant to the Offering, exercisable at any
time up to 30 days from the closing of the Offering. The Company
intends to use the net proceeds of the Offering at the Bellekeno
mine which it's currently developing, for construction backstop
finance to mitigate capital cost overrun risk and for the mine's
initial working capital finance, and to further explore and develop
the Company's other properties located in the Keno Hill silver
district in Canada's Yukon Territory. The closing of the Offering
is expected to occur on or about February 15, 2010 and is subject
to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock
Exchange and NYSE-AMEX, and the securities regulatory authorities.
A short form prospectus relating to the securities has been filed
with Canadian securities authorities, and a registration statement
containing, in part, the short form prospectus has been filed with
the United States Securities and Exchange Commission but has not
yet become effective. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration
statement becomes effective. A copy of the short form prospectus
relating to the Common Shares as filed in Canada and as filed in
the registration statement in the United States may be obtained
upon request by contacting: Canaccord Financial Ltd., 3000 - 161
Bay Street, Toronto, ON, Canada, M5J 2S1 (tel: 416-869-7368), or
Cormark Securities Inc., 2800 - 200 Bay Street, Toronto, ON,
Canada, M5J 2J2 (tel: 416-362-7485). About Alexco Alexco's business
is to unlock value and manage risk at mature, closed or abandoned
mine sites through integration and implementation of the Company's
core competencies which include management of environmental
services, execution of mine reclamation and closure operations and
if appropriate, rejuvenation of exploration and development of new
mining opportunities. Some statements in this news release contain
forward-looking information concerning the Corporation's
anticipated results and developments in the Corporation's
operations in future periods, planned exploration and development
of its properties, plans related to its business and other matters
that may occur in the future, made as of the date of this press
release. Forward-looking statements may include, but are not
limited to, statements with respect to the anticipated closing of
the offering, the intended use of proceeds from the offering,
future remediation and reclamation activities, future mineral
exploration, the estimation of mineral reserves and mineral
resources, the realization of mineral reserve and mineral resource
estimates, the timing of activities and the amount of estimated
revenues and expenses, the success of exploration activities,
permitting time lines, requirements for additional capital and
sources and uses of funds. 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 the offering not
closing, including risks in obtaining regulatory approval and
market risks; risks related to actual results of exploration
activities; actual results of remediation and reclamation
activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold,
silver and other commodities; possible variations in ore reserves,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; accidents, labour disputes and other
risks of the mining industry; and delays in obtaining governmental
approvals or financing or in the completion of development
activities. DATASOURCE: Alexco Resource Corp. CONTACT: Clynton R.
Nauman, President and Chief Executive Officer of Alexco, by
telephone at (604) 633-4888 or by email to
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