Yamana Gold invests C$21M to accelerate Ascot’s Premier project
(Kitco News) - Ascot Resources (TSX: AOT; OTCQX: AOTVF) announced Monday that Yamana Gold has agreed to purchase 24,000,000 common shares of the company at an issue price of $0.86 per share for the total of C$20,640,000. The company said that Yamana is purchasing the shares for investment purposes and will hold on closing of the offering approximately 6.4% of the company's basic shares outstanding.
According to the statement, the net proceeds from the offering will be used to fund construction of the company's Premier gold project in British Columbia and working capital and general corporate purposes.
President and CEO Derek White commented, "The bought deal private placement and investment by Yamana arose subsequent to the bought deal financing which closed last Friday. This additional funding will facilitate the company's ability to accelerate its surface and underground exploration during construction. We are delighted with having Yamana as a shareholder."
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.