Ascot secures US$105 million from Sprott and Beedie to start construction at Premier
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!
|Premier gold project, BC. Image credit: Ascot Resources.|
(Kitco News) - Ascot Resources (TSX: AOT; OTCQX: AOTVF) announced on Thursday the closing of a US$105 million project financing package with Sprott and Beedie Investments.
The financing is comprised of a senior credit facility for US$80 million provided by Sprott, and a subordinated convertible facility for US$25 million provided by Beedie and Sprott.
Proceeds will be used to develop the company’s Premier gold project in northern British Columbia and to repay the existing convertible notes on closing.
President and CEO Derek White commented, “We are very pleased with the financial commitments that Sprott and Beedie have made towards the development of the project. We have achieved our objective of securing a flexible financing package on terms that are competitive and protect the upside for our shareholders. Combined with the equity financing completed in June, this package secures approximately US$45 million of immediate funding enabling us to order long lead-time equipment, undertake pre-construction activities, advance permitting and refinance our existing convertible note.”
All definitive documentation for the financing has been signed and the company expects to receive the first US$20 million tranche from the credit facility on December 10, 2020.
Ascot is a Canadian-based exploration and development company focused on re-starting the past producing historic Premier gold mine, located in British Columbia's Golden Triangle. The company continues to define high-grade resources for underground mining with the near-term goal of converting the underground resources into reserves, while continuing to explore nearby targets on its Premier/Dilworth and Silver Coin properties.