NEWS REPORT There are two important time frames mentioned in this announcement; 1) We remain on target to announce the results of our pre-feasibility study before the end of Q1 and continue to target a production decision in the first half of 2019 subject to market conditions; and 2) final permitting for the Bermingham deposit to be completed – currently anticipated at the end of Q2-2019.
The pre-feasibility time frame, if adhered to as per this anouncement, will be released within the next 5 weeks. Could be exciting times for share holders!? Good luck to all.
February 14, 2019 – Alexco Resource Corp. (NYSE American: AXU, TSX: AXR)(“Alexco” or the “Company”) is pleased to announce that it has extended the draw down availability period on its previously established definitive credit agreement (the “Agreement”) with Sprott Private Resource Lending (Collector), L.P. to provide a US$15 million credit facility (the “Credit Facility”) to be used for the development of the Keno Hill Silver projects located in Yukon, Canada (see press news release dated February 26, 2018, entitled “Alexco Establishes US$15 Million Credit Facility”). Pursuant to the terms of the Agreement, Alexco has issued 171,480 common shares of the Company to extend the draw down availability period by six months.
Clynt Nauman, Alexco CEO and Chairman commented, “With the extension of the draw down availability period of the Credit Facility, we are simply maintaining this back-stop and financing alternative while waiting for final permitting for the Bermingham deposit to be completed – currently anticipated at the end of Q2-2019. We remain on target to announce the results of our pre-feasibility study before the end of Q1 and continue to target a production decision in the first half of 2019 subject to market conditions. The Credit Facility carries a total interest charge of approximately 9.75% on funds drawn down, has no minimum drawdown requirement and does not carry a stand-by charge. Retaining the Facility as a back-stop allows the Company to easily move to a production decision while managing project risk and minimizing shareholder dilution.”
Key Terms of the Credit Facility
- Term of 3 years, Maturity Date – February 23, 2021
- US$15 million
- Interest rate on funds drawn down of 7% plus US Dollar 3 month LIBOR, payable monthly
- Repayable in quarterly installments from October 31, 2019 through to the Maturity Date
- Upon draw down of funds a 3% charge of the draw down is charged
- Repayable in whole or in part, without penalty, provided not less than twelve (12) months of interest has been paid on any outstanding amount
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