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Alexco
Resource Corp. (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, pursuant to a
short form prospectus, 3,750,000 common shares (the "Common
Shares") of the Company at a price of CAD$8.20 per share for gross
proceeds of CAD$30,750,000 (the "Underwritten Offering"). In
addition, the Company will grant the Underwriter an over-allotment option,
exercisable for a period of up to 30 days after the closing of the
Underwritten Offering, to purchase from the Company up to an additional 562,500
common shares at CAD$8.20 per share to raise additional gross proceeds of up
to CAD$4,612,500 (the "Over-Allotment Option", and together with
the Underwritten Offering, the "Offering").
The Underwriters will receive a cash commission of 6% of the gross
proceeds raised, and share purchase warrants entitling the Underwriters to
purchase, at a price of $8.50 per share within 12 months after closing of the
Offering, common shares of the Company equal to 4% of the aggregate number of
securities sold pursuant to the Offering.
The Company intends to use the net proceeds of the Offering to fund
project development and ongoing exploration activities, and for general
corporate purposes.
Closing of the Offering is anticipated to occur on or before December
23, 2010 and is subject to certain conditions including, but not limited to,
the completion of satisfactory due diligence by the Underwriter and the
receipt of applicable regulatory approvals including approval of the Toronto
Stock Exchange and the NYSE Amex.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any of the
Common Shares in any jurisdiction in which such offer, solicitation or sale
would be unlawful. The Common Shares have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered or
sold within the United States or to, or for the benefit of, U.S. persons (as
defined in Regulation S under the U.S. Securities Act) unless registered
under the U.S. Securities Act and applicable state securities laws or
pursuant to an exemption from such registration requirements.
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 Company's anticipated results and developments in
the Company's operations in future periods, planned exploration and
development of its properties, plans related to its business or financings
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 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 actual results of remediation and
reclamation activities; actual results of exploration 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 bodies, 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.
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