AOTVF - Ascot Resources Announces C$20 Million Bought Deal Financing | Benzinga
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VANCOUVER, British Columbia, July 09, 2024 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX:AOT, OTCQX:AOTVF) ("Ascot" or the "Company") has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets (collectively, the "Underwriters"), under which the Underwriters have agreed to buy on a bought deal basis by way of private placement, 30,242,000 flow-through units (the "Flow-Through Units") and 11,630,000 hard dollar units (the "HD Units") of the Company (together, the "Offered Securities"), at a price of C$0.496 per Flow-Through Unit and C$0.43 per HD Unit for aggregate gross proceeds of approximately C$20 million (the "Offering"). Each Offered Security shall consist of one common share of the Company (each, a "Share") and one common share purchase warrant of the Company (each, a "Warrant"). Each Warrant will entitle the holder to acquire one Share (each, a "Warrant Share") at a price of C$0.52 per Warrant Share for a period of 24 months following Closing. In addition, the Company has also granted the Underwriters an option, exercisable up to 48 hours prior to the closing of the Offering, to purchase up to an additional 15% of the number of Offered Securities purchased pursuant to the Offering.
The gross proceeds raised from the Shares and Warrants comprising Flow-Through Units will be used by the Company to incur eligible "Canadian development expenses" (within the meaning of the Income Tax Act (Canada)) (the "Qualifying Expenditures"). The Qualifying Expenditures will be incurred or deemed to be incurred and renounced to the purchasers of the Flow-Through Units with an effective date no later than December 31, 2024. The net proceeds raised pursuant to the issuance of the HD Units will be used for the ongoing commissioning and ramp-up of the Premier Gold Mine, for additional working capital, and for general corporate purposes.
The Offering is expected to close on or about July 25, 2024 and is subject to the ...