Published: February 21, 2024 |

[Click image to enlarge]

Ascot Resources Ltd. said it has entered into non-binding term sheets for a total of approximately $50 million in additional funding from Sprott Resource Streaming and Royalty Corp. (SRSR) and Nebari Natural Resources Credit Fund.

Additionally, the company has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Desjardins Capital Markets to which the underwriters have agreed to buy on a bought deal private placement basis, 56,820,000 common shares of the company at a price of $0.33 per common share, for gross proceeds of approximately $18.5 million. The proceeds from these additional funding sources will be used for the construction and operational ramp-up of the Premier Gold Project (PGP), to buy-back existing royalties, for additional working capital, and for general corporate purposes.

The proposed financing package would consist of a royalty restructuring with Sprott Streaming for gross proceeds of $30 million, a $20 million cost overrun facility (COF) with Nebari Credit Fund II, and the $18.5 million offering.

“Over the past year the company, despite many challenges, has achieved significant progress in the construction and mining development of the Premier Gold Project and we are excited about moving towards production in the very near term. Project construction was 86 percent complete at the end of December 2023, and as we complete this phase of the project, the company has been focusing it efforts to prepare for the initial production and ramp-up phase of the operation. It is paramount at this stage that the company is well financed and I believe this funding package accomplishes this,” said Derek White, president and CEO of Ascot.

“Ascot has been very successful with its infill drilling activities over the past few years and reducing the historical 5 percent NSR royalty rights on the initial mining areas is value accretive to the company. We are very pleased that our major financing partner SRSR has been supportive of the project and agreed to restructure the historical 5 percent NSR royalties. Our existing financing arrangements had contemplated a $20 million cost overrun facility and we are pleased to progress this with our existing capital providers. We are also appreciative of the support from current and new shareholders as we continue our work to develop Canada’s newest producing gold mine,” added White.

Ascot Resources is a Canadian junior exploration and development company focused on re-starting the past producing Premier gold mine, located on Nisga’a Nation Treaty Lands, in British Columbia’s prolific Golden Triangle. Concurrent with progressing the development of PGP, the company continues to successfully explore its properties for additional high-grade underground resources. Ascot is committed to the safe and responsible development of Premier in collaboration with Nisga’a Nation as outlined in the benefits agreement.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)