• Mining company Ascot Resources (AOT) has closed a project financing package with lenders, worth approximately C$133.6 million
  • Sprott Private Resource Lending II has provided the company with a senior credit facility, valued at roughly C$101.8 million
  • Ascot Resources has also received a subordinated convertible facility worth approximately C$31.8 million from Beedie Investments and Sprott
  • The funds will help the company to develop its Premier Gold Project, and to repay its existing convertible notes
  • Ascot Resources is up 4.5 per cent, and is currently trading for $1.16 per share

Mining company Ascot Resources (AOT) has closed a project financing package with lenders, worth approximately C$133.6 million.

The lenders in question are Sprott Private Resource Lending II (Collector), LP and Beedie Investments. The financing package consists of a senior credit facility from Sprott and a subordinated convertible facility from both Beedie and Sprott.

The senior credit facility, which has a term of five years, is valued at roughly C$101.8 million. 

The subordinated convertible facility is worth approximately C$31.8 million, and has an initial term of three years. However, upon receipt of project construction permits, it may be extended for an extra year.

Ascot Resources will use the facilities to develop its Premier Gold Project, located in northern British Columbia. This development will include the purchase of long lead-time equipment, pre-construction activities, and advance permitting.

The company will also use some funds to repay existing convertible notes from Sprott Private Resource Lending and Resource Income Partners Limited Partnership.

Ascot Resources’ President and CEO, Derek White, said the company is very pleased with the financial commitments that Sprott and Beedie Capital have made towards development of the project.

“We have achieved our objective of securing a flexible financing package on terms that are competitive and protect the upside for our shareholders,” he said.

“The optionality of repayment of both the Senior Facility and the Convertible Facility in a rising gold price environment provides the company financing flexibility,” he added.

Ascot Resources is up 4.5 per cent and trading for $1.16 per share, as of 12:20pm EST.

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