Ascot Resources Ltd. - President & CEO, Derek White.
President & CEO, Derek White.
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  • Ascot Resources (AOT) has signed non-binding letters of intent for a total of approximately C$200 million in project financing
  • The is for the construction of the Premier Gold Project (PGP) in northwestern BC
  • The proposed finance package will involve a US$110 million gold and silver streaming agreement with Sprott and equity investment by Ccori Apu S.A.C of C$45 million
  • Ascot Resources Ltd. is a Canadian junior exploration and development company
  • Ascot Resources Ltd. opened trading at C$0.39

Ascot Resources (AOT) has signed non-binding letters of intent for a total of approximately C$200 million in project financing.

The is for constructing the Premier Gold Project (PGP), located on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of northwestern British Columbia.

The proposed finance package will involve a US$110 million gold and silver streaming agreement with Sprott Resource Streaming and Royalty Corp. and/or its affiliates  (SRSR) and a strategic equity investment by Ccori Apu S.A.C of C$45 million.

A portion of the equity investment 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. (“Poderosa”), which owns and operates a high-grade gold mine in northern Peru and produces approximately 300,000 ounces of gold per year.

“We are thrilled to have found an attractive financing solution to complete construction at PGP,” noted Derek White, President and CEO of Ascot.

“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,” he added.

The strategic investment will consist of 48,500,000 common shares of the company at a price of C$0.41 per common share for gross proceeds of C$19,885,000 and 60,000,000 common shares of the company that qualify as “flow-through shares,” as defined in the Income Tax Act (Canada) that may be donated to a registered charity at a price of C$0.50 per CDE common share for gross proceeds of C$30,000,000.

The common shares and CDE common shares will be offered by way of a private placement.

The net proceeds from the sale of the common shares will be used for capital costs at the Premier Gold Project and general corporate purposes. The gross proceeds of the sale of CDE common shares will be used to incur capital expenditures at the Premier Gold Project.

If this C$200 million funding is completed, the company anticipates delivering the project in line with the most recently guided timeframe, with the first gold pour expected in early 2024.

Ascot Resources Ltd. is a Canadian junior exploration and development company.

Ascot Resources Ltd. opened trading at C$0.39.


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