Ascot Resources (TSX: AOT) has returned to the market again in an attempt to fund the restart of its Premier Gold Project.
The latest financing, co-led by BMO Capital Markets and Desjardins Capital Markets, will aim to raise between $60 million and $65 million, at $0.115 per unit on a best efforts basis. Each unit is to contain one common share and one common share purchase warrant, with an exercise price of $0.155 per share. Warrants are valid for a period of 24 months from the date of issuance.
Funds of course will be used to advance Premier Gold as well as general corporate purposes. The company provided a further breakdown, indicating that on the assumption of the minimum amount being raised, it will have total funding sources of $73 million, which includes the $6 million in cash it has on hand, despite raising $42 million in November at $0.16 per share.
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READ: Ascot Resources Delays Premier Gold Restart Again, Needs Further Funding
That $73 million will see the bulk of it, $35 million, allocated to mine and infrastructure development. $24 million will then be allocated to processing and site operations, $4 million to environmental and regulatory compliance, $3 million to finance and corporate costs, and the remainder allocated to general working capital.
At the same time, waivers have been obtained from Sprott Private Resource Streaming and Royalty, as well as Nebari and its affiliates, for the extension of waivers and forbearance conditions through to September 30.
Closing of the offering remains subject to the receipt of forbearance from these lenders, as well as the company not being required by the TSX to obtain shareholder approvals for the financing.
Ascot Resources last traded at $0.145 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
