Published: December 14, 2020 |

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Ascot Resources, a Canadian exploration and development firm, has secured $105 million construction finance package for the Premier Gold project in northern British Columbia, Canada.

The financing was obtained from Sprott Private Resource Lending II and Beedie Investments for the development of the project. It consists of a senior credit facility for $80 million provided by Sprott, and a subordinated convertible facility for $25 million provided by Beedie and Sprott.

“We are very pleased with the financial commitments that Sprott and Beedie Capital have made towards the development of the Project. Combined with the equity financing completed in June, this package secures approximately US$45 million of immediate funding enabling us to order long lead-time equipment, undertake pre-construction activities, advance permitting, and refinance our existing convertible note,” said Derek White, president and CEO of Ascot.

“The financing process has been a team effort and I would like to acknowledge the efforts of all involved from the Ascot team, our advisors Auramet International, Agentis Capital Mining Partners, and our legal counsel Blakes Cassels and Graydon,” added White.

“As one of the largest investors dedicated to the natural resource sector, Sprott is excited to partner with Ascot on the development of the Premier Gold Project. Our partnership with Ascot is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects,” said Narinder Nagra, managing partner of Sprott.

“We are excited to partner with Ascot and Sprott as part of this comprehensive financing package. We look forward to supporting Ascot through the development of the Project into becoming a significant gold producer in British Columbia,” said David Bell, managing director at Beedie Capital.

Located 25km from the town of Stewart, British Columbia, the Premier gold project consists of a land position of 8,133ha with three key deposits. The three brownfield underground deposits are Premier, Silver Coin, and Big Missouri, which had historical mining activities and underground access. As of April 2020, the proven and probable reserves of the project were estimated to be 3.63 million tonnes (Mt) grading 5.45g/t gold and 19.11g/t silver.

The asset was acquired by Ascot from the Swedish mining company Boliden through an agreement signed in June 2009. Opened in 1918, the Premier underground mine was the largest gold mine in North America until its closure in 1952.

Source: NS Energy

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