/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
VANCOUVER, May 8, 2017 /CNW/ - Alexco Resource Corp.
(TSX:AXR, NYSE‑MKT:AXU) ("Alexco" or the "Company") is pleased to announce that it has entered into an agreement with
Canaccord Genuity Corp. (the "Underwriter"), pursuant to which the Underwriter has agreed to purchase, on a bought deal
basis 2,325,600 flow-through common shares (the "Flow-Through Shares") at a price of C$2.15 per
Flow-Through Share for aggregate gross proceeds of C$5,000,040 (the "Underwritten Offering").
In addition, the Company will grant the Underwriter an over-allotment option, exercisable prior to the closing of the
Underwritten Offering, to purchase from the Company, Flow-Through Shares to raise additional proceeds of up to C$2,042,500 (the "Over-Allotment Option", and together with the Underwritten Offering, the "Offering").
The Underwriter will receive a cash commission on the sale of the securities, representing 6% of the aggregate gross proceeds
raised, including that number of broker warrants ("Broker Warrants") as is equal to 3% of the number of Flow-Through Shares sold
under the Offering. Each Broker Warrant shall be exercisable for one common share of the Company at a price of C$2.15 at any time up to 24 months after closing.
The net proceeds from the sale of the Flow-Through Shares will be used for expenditures on the Company's Keno Hill District
exploration properties, which qualify as Canadian exploration expenses (within the meaning of the Income Tax Act
(Canada)). The Company will renounce such Canadian exploration expenses with an effective
date of no later than December 31, 2017. With completion of this Offering, the Company is
fully funded for all planned 2017 expenditures.
Closing of the Offering is anticipated to occur on or around May 30, 2017 and is subject to
certain conditions including, but not limited to, the receipt of all applicable regulatory approvals including approval of the
Toronto Stock Exchange and NYSE MKT LLC.
About Alexco
Alexco Resource Corp. owns the Bellekeno silver mine, one of several mineral properties held by Alexco which encompass
substantially all of the historical Keno Hill Silver District located in Canada's Yukon
Territory. Employing a unique business model, Alexco also provides mine-related environmental services, remediation
technologies and reclamation and mine closure services to both government and industry clients through the Alexco Environmental
Group, its wholly-owned environmental services division.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of
any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including in the United States. The securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any securities laws of any state of the United States and may not be offered or sold within the United States
or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless
registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration
requirements.
Some statements ("forward-looking statements") in this news release contain forward-looking information concerning the
Offering and the use of proceeds thereof, the Company's anticipated results and developments in the Company's operations in
future periods, planned exploration and development of its properties, plans related to its business and other matters that may
occur in the future, made as of the date of this news release. Forward-looking statements may include, but are not limited
to, statements with respect to the proposed Offering, anticipated closing of the Offering, potential exercise by the
Underwriter of the Over-Allotment Option, anticipated use of proceeds, and future exploration and development
activities. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors
which could cause actual events or results to differ from those expressed or implied by the forward-looking statements.
Such factors include, among others, risks related to conditions precedent to closing of the Offering, including regulatory
approval of the Offering, not being satisfied in a timely manner or at all; risks related to Alexco's ability to raise additional
capital; actual results and timing of exploration and development activities; actual results and timing of mining activities;
actual results and timing of environmental services activities; actual results and timing of remediation and reclamation
activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of
silver, gold, lead, zinc and other commodities; possible variations in mineable resources, grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; First
Nation rights and title; continued capitalization and commercial viability; global economic conditions; competition; and delays
in obtaining governmental approvals or financing or in the completion of development activities. Forward-looking statements
are based on certain assumptions that management believes are reasonable at the time they are made. In making the
forward-looking statements included in this news release, the Company has applied several material assumptions, including, but
not limited to, the assumption that regulatory approval of the Offering will be obtained in a timely fashion, that the
conditions precedent to completion of the Offering will be fulfilled so as to permit the Offering to be completed on or about
May 30, 2017, that the Company will be able to raise additional capital that the proposed
exploration and development will proceed as planned, and that market fundamentals will result in sustained silver, gold, lead and
zinc demand and prices. There can be no assurance that forward-looking statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in such statements. The Company expressly
disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information,
future events or otherwise, except as otherwise required by applicable securities legislation.
SOURCE Alexco Resource Corp.
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