AOTVF - Ascot Resources Announces Increase to Previously Announced Bought Deal Offering to C$29 Million | Benzinga
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VANCOUVER, British Columbia, July 09, 2024 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX:AOT, OTCQX:AOTVF) ("Ascot" or the "Company") is pleased to announce that due to strong demand, it has increased the size of the previously announced public offering of flow-through units (the "Flow-Through Units") to 30,242,000 Flow-Through Units at a price of C$0.496 per Flow-Through Unit and of hard dollar units (the "HD Units") to 32,560,000 HD Units at a price of C$0.43 per HD Unit (together, the "Offered Securities") for gross proceeds of approximately C$29 million (the "Offering"). In connection therewith, the Company has entered into an amended agreement with a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets (collectively, the "Underwriters"). 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 11,628,000 HD Units for additional gross proceeds of up to C$5,000,040 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 ...