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Ascot arranges C$200 million financing for construction of the Premier gold project

Kitco Media
By Vladimir Basov
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(Kitco News) - Ascot Resources (TSX: AOT) announced Monday that the company has entered into non-binding letters of intent for a total of approximately C$200 million in project financing for construction of the Premier gold project (PGP), located in British Columbia, Canada.

The company said that the proposed finance package will consist of a US$110 million gold and silver streaming agreement with Sprott Resource Streaming and Royalty and/or its affiliates and a strategic equity investment by Ccori Apu S.A.C of C$45 million, a portion of which will be structured as Canadian Development Expenditures flow through shares, such that the total gross proceeds to the company is C$50 million.

Ccori Apu's shareholders are the majority shareholders of Compañía Minera Poderosa S.A., which owns and operates a high-grade gold mine in northern Peru and produces approximately 300,000 ounces of gold per year.

Importantly, Ascot noted it maintains its previously announced targeted project timeline, with plant pre-commissioning to start in Q4 2023 and first gold pour anticipated to occur in early 2024.

President and CEO Derek White commented, "We are thrilled to have found an attractive financing solution to complete construction at PGP. In combining the new US$110 million stream from Sprott Streaming with the strategic equity investment from Ccori Apu, Ascot is able to advance towards production with minimal debt."

"We are delighted to see Ccori Apu's interest in our project and welcome their involvement and experience as successful operators in high-grade, underground gold mining as we advance PGP. The company considers Ccori Apu's investment as a strong vote of confidence from an experienced underground gold mining company."

Ascot is a Canadian junior exploration and development company focused on re-starting the past producing Premier gold mine, located on Nisga'a Nation Treaty Lands, in British Columbia's prolific Golden Triangle. Concurrent with progressing the development of Premier, the company continues to successfully explore its properties for additional high-grade underground resources.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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