- Ascot Resources (TSX:AOT) has completed its previously announced bought deal financing for gross proceeds of approximately C$25 million
- The company issued a total of 29.41 million common shares at a price of 85 cents each
- Desjardins Capital Markets and Stifel GMP led a syndicate of underwriters that included Paradigm Capital and Sprott Capital Partners
- The proceeds will be used to fund the development of the company’s Premier Gold Project, along with the purchase of long lead time equipment
- Ascot Resources (AOT) is up 2.5 per cent and is trading at 82 cents per share
Ascot Resources (TSX:AOT) has completed its previously announced bought deal financing for gross proceeds of approximately C$25 million.
Under the terms of the offering, the company issued a total of 29.41 million common shares at a price of 85 cents each, pursuant to a short form prospectus dated June 10, 2020.
Desjardins Capital Markets and Stifel GMP co-led a syndicate of underwriters, which included Paradigm Capital and Sprott Capital Partners.
With the financing now complete, Ascot Resources intends to use the proceeds to fund the development of is Premier Gold Project, along with the purchase of long lead-time equipment. A portion will also be used for general working capital purposes.
Derek White, President and CEO of Ascot Resources, commented on the completion of the financing.
“The completion of the offering facilitates the funding for the order of long lead time items and continued development, optimisation and de-risking of the Premier Gold Project.
“This supports the company’s efforts of re-starting the mining operations at the Premier Gold Project,” he said.
The Premier Gold Project covers 8,133 hectares and hosts three key deposits, as well as a number of exploration targets.
The site originally opened in 1918 and was North America’s largest gold mine until its closure in 1952. Over its lifetime the mine produced two million ounces of gold and 45 million ounces of silver.
According to drill results from 2019’s field season, the Premier Gold Project holds a total indicated mineral resource of approximately 1.1 million ounces of gold and around 4.7 million ounces of silver.
Ascot Resources (AOT) is up 2.5 per cent and is trading at 82 cents per share at 11:07am EDT.