- Ascot Resources is advancing C$25 million financing and C$67 million funding for its Premier Gold Project in British Columbia
- The gold penny stock signed non-binding term sheets from Sprott Resource Streaming and Royalty Corp. and its affiliates to complete construction and ramp up the Premier Gold Project
- Gross proceeds of C$40.4 million will grant Ascot the right sell to Sprott Resource Streaming and Royalty a new 3.10 per cent net smelter return royalty covering the property package
- Ascot Resources stock last traded at $0.49 per share
Ascot Resources (TSX:AOT) is advancing C$25 million financing and C$67 million funding for its Premier Gold Project in British Columbia.
The gold penny stock signed non-binding term sheets from Sprott Resource Streaming and Royalty Corp. and its affiliates and Nebari Natural Resources Credit Fund II, LP to complete construction and ramp up the Premier Gold Project in B.C.’s Golden Triangle, to buy back existing royalties, for additional working capital and for general corporate purposes.
The company signed an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Desjardins Capital Markets that have agreed to buy on a bought deal private placement basis, 56,820,000 Ascot shares at $0.44 per share, for gross proceeds of C$25 million.
Gross proceeds of C$40.4 million will grant Ascot the right sell to Sprott Resource Streaming and Royalty a new 3.10 per cent net smelter return royalty covering the property package. Until the end of 2026, up to 50 per cent of the new royalty can be repurchased for varying amounts depending on timing and cumulative production.
“Over the past year the company, despite many challenges, has achieved significant progress in the construction and mining development of the Premier Gold Project and we are excited about moving towards production in the very near term. Project construction was 86 per cent complete at the end of December 2023, and as we complete this phase of the project, the company has been focusing its efforts to prepare for the initial production and ramp-up phase of the operation,” Ascot’s president and CEO, Derek White, said in a news release.
Ascot Resources is a Canadian junior exploration and development company. It is focused on restarting the past-producing Premier gold mine on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of northwestern B.C., and exploring its other properties for high-grade gold and copper underground resources.
Ascot Resources stock last traded at $0.49 per share.
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