Ascot Resources Ltd. (TSX: AOT | OTCQX: AOTVF) has entered into non-binding term sheets for a total of approximately US$50M in additional funding from Sprott Resource Streaming and Royalty Corp. and/or its affiliates and Nebari Natural Resources Credit Fund II.
The company has also entered into an agreement with a group of underwriters co-led by BMO Capital Markets and Desjardins Capital Markets, pursuant to which they have agreed to buy on a bought deal private placement basis 56,820,000 common shares of the company at a price of C$0.44 per common share, for gross proceeds of approximately C$25M.
Derek White, president, and CEO of Ascot commented, “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% 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.”
The company has stated that the proceeds from these additional funding sources will be used for the construction and operational ramp-up of the Premier Gold Project, to buy-back existing royalties, for additional working capital, and for general corporate purposes.
In addition, the proposed financing package would consist of a royalty restructuring with Sprott Streaming for gross proceeds of US$30M, a US$20M cost overrun facility with Nebari Credit Fund II, and the C$25M offering.
To find out more, please visit www.ascotgold.com
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