Alexco Arranges Fully Subscribed Flow-Through Financing of $7 Million At a 10% Premium to Last Closing Price; Fully Financed for Substantial Exploration Program in 2013
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Alexco Resource Corp. (TSX:AXR)(NYSE MKT:AXU) today reports that it has fully placed a private placement of 1,900,000 flow-through common shares (the "Flow-Through Common Shares") of the Company at a price of $3.70 per Flow-Through Common Share, a 10% premium to the last TSX closing price on March 28, 2013, for gross proceeds of $7,030,000 (the "Offering"). Stonecap Securities Inc. ("Stonecap") acted as agent for the Company on this financing.
The gross proceeds from the sale of the Flow-Through Shares will be used for expenditures on the Company's Keno Hill District exploration properties, which qualify as Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), with the Company to ensure that such Canadian exploration expenses qualify as "flow-through mining expenditures" (which qualify for the 15% Federal investment tax credit) for purposes of the Income Tax Act (Canada). The Company will incur such Canadian exploration expenses no later than December 31, 2014 and renounce such Canadian exploration expenses with an effective date of no later than December 31, 2013. With this flow-through financing, the Company is fully financed for all planned 2013 expenditures.
The Offering is scheduled to close on or about April 23, 2013, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange, the NYSE MKT, and the relevant securities regulatory authorities. Shares issued under this Offering are subject to a four month hold period.
About Alexco
Alexco Resource Corp. owns and operates 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's Yukon Territory. Bellekeno, which commenced commercial production at the beginning of calendar year 2011, is Canada's only operating primary silver mine. The Keno Hill Silver District lies within the traditional territory of the First Nation of Na-Cho Nyak Dun which has a fully settled land claim agreement with the Government of Canada and the Yukon, and Alexco operates within the District under a comprehensive cooperation and benefits agreement with the First Nation. Alexco's primary near-term exploration objective is to unlock value in the silver-rich Keno Hill District, and is focused on growth by advancing its promising District properties to development decisions. The Company's goal is to produce 7 million to 10 million ounces of silver annually within the next decade. 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.
Please visit the Alexco website at www.alexcoresource.com.
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