VANCOUVER, July 29, 2014 /PRNewswire/ - Alexco Resource Corp. (TSX:AXR, NYSE-MKT:AXU) ("Alexco" or the
"Company") is pleased to announce that it has entered into an agreement with an
underwriter (the "Underwriter"), pursuant to which the Underwriter has agreed to purchase, on a bought
deal basis pursuant to a short form prospectus, 4,350,000 units (the
"Units") of the Company at a price of C$1.15 per Unit (the "Offering
Price") for gross proceeds of C$5,002,500 (the "Underwritten
Offering"). Each Unit shall consist of one common share of the Company
and one half of one common share purchase warrant (each whole common
share purchase warrant, a "Warrant"). Each Warrant shall be
exercisable into one common share of the Company for a period of 24
months from the Closing Date (as herein defined) at an exercise price
of C$1.40.
In addition, the Company has granted the Underwriter an option (the
"Over-Allotment Option" and together with the Underwritten Offering,
the "Offering") to purchase additional Units and/or additional
Warrants, up to such number of additional Units and additional Warrants
as is equal to 15% of the Underwritten Offering, for a period of 30
days after and including the Closing Date to cover over-allotments, if
any, and for market stabilization purposes.
The net proceeds from the Offering are expected to be used by the
Company for exploration and development of the Company's projects and
for general working capital purposes.
Closing of the Offering is anticipated to occur on or around August 21,
2014 (the "Closing Date") and is subject to certain conditions
including, but not limited to the receipt of all applicable regulatory
approvals including approval of the TSX and the NYSE-MKT.
About Alexco
Alexco Resource Corp. owns the Bellekeno silver mine, one of several
mineral properties held by Alexco which encompass substantially all of
the historical Keno Hill Silver District located in Canada'sYukon
Territory. Employing a unique business model, Alexco also provides
mine-related environmental services, remediation technologies and
reclamation and mine closure services to both government and industry
clients through the Alexco Environmental Group, its wholly-owned
environmental services division.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill Silver District was a world-class
silver producer, with more than 217 million ounces of silver produced
at average grades of 40.5 ounces per ton silver, 5.6% lead and 3.1%
zinc (Yukon Government's Minfile database). These historical
production grades would rank Keno Hill in the top 3% by grade of
today's global silver producers.
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 securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful, including in the United States. The securities 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 securities laws of
any state of the United States and may not be offered or sold within
the United States or to, or for the account or 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.
Some statements ("forward-looking statements") in this news release
contain forward-looking information concerning the Offering and the use
of proceeds thereof, 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 and other
matters that may occur in the future, made as of the date of this news
release. Forward-looking statements may include, but are not limited
to, statements with respect to the proposed Unit offering, anticipated
closing of the Unit offering, potential exercise by the Underwriter of
the over-allotment option, anticipated use of proceeds, future
development activities, future mine operation and production, the
anticipated timing of making a production decision in the Eastern Keno
Hill Silver District including recommencement of production at the
Bellekeno mining operation. 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 regulatory approval of the
Offering; risks related to Alexco's ability to raise additional
capital; actual results and timing of exploration and development
activities; actual results and timing of mining activities; actual
results and timing of environmental services activities; actual results
and timing of remediation and reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue
to be refined; future prices of silver, gold, lead, zinc and other
commodities; possible variations in mineable resources, grade or
recovery rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the mining
industry; First Nation rights and title; continued capitalization and
commercial viability; global economic conditions; competition; and
delays in obtaining governmental approvals or financing or in the
completion of development activities. Forward-looking statements are
based on certain assumptions that management believes are reasonable at
the time they are made. In making the forward-looking statements
included in this news release, the Company has applied several material
assumptions, including, but not limited to, the assumption that
regulatory approval of the Offering will be obtained in a timely
fashion, that the Company will be able to raise additional capital that
the proposed exploration and development will proceed as planned, and
that market fundamentals will result in sustained silver, gold, lead
and zinc demand and prices. There can be no assurance that
forward-looking statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise, except as
otherwise required by applicable securities legislation.
SOURCE Alexco Resource Corp.