Ascot Resources (AOT-T) July 11, '16 is pleased to announce that, subject to regulatory approval, it will undertake a non-brokered private placement offering with Mr Eric Sprott or his nominee of $20 million.
The private placement will consist of both flow through units (the "FT Units") and hard dollar units (the "HD Units").The FT Units will be priced at $1.25 and will consist of one flow through share and one half of one non-transferable, common share purchase warrant. Each whole warrant will be exercisable for an additional common share for a period of two years from the closing of the Offering at an exercise price of $1.50. The HD Units will be priced at $1.15 and will consist of one common share and one half of one non-transferable, common share purchase warrant. Each whole warrant will be exercisable for an additional common share for a period of two years from the closing of the Offering at an exercise price of $1.50 per share. The securities issued pursuant to the Offering will be subject to statutory hold periods expiring four months and one day from the date of issuance of such securities, and such other restrictions as are required by applicable securities laws.
Closing is scheduled for August 5, 2016. The portion of the financing that is to be FT units will be determined by the Company prior to the closing.
In connection with the Offering, the Company will pay, subject to TSX Venture Exchange approval, a cash fee of 7.0% of the gross proceeds raised by finders and issue non-transferable warrants ("Finder's Warrants") equal to 7.0% of the Units sold pursuant to the efforts of finders. The Finder's Warrants will be exercisable at $1.25 per Finder's Warrant for FT Units and $1.15 per Finder's Warrant for HD Units into common shares of the Company for a period of twenty-four months from the closing of the Offering.
Upon final closing a nominee of Mr Sprott will be invited to join the Company's Board of Directors.
The proceeds from the Offering will be used for exploration expenditures on the Company's Premier property and for working capital. Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.
For more information concerning the Company, please refer to the Company's profile on the SEDAR website at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ASCOT RESOURCES LTD.
"John A Toffan", President
Ascot Resources Ltd.
(604) 379-1170
www.ascotresources.ca |
