Changes are afoot at Ascot Resources (TSXV: AOT.H), who yesterday afternoon announced a series of leadership changes following a major investment by Frank Giustra’s Fiore Group. The changes coincided with the closing of the first tranche of a private placement and certain restructurings to creditor agreements.
Jim Currie has stepped down as President, CEO and Director of Ascot Resources, with Robert McLeod named as his replacement. McLeod notably started his career in the mining industry at the Premier Mine, working as a mill operator for Westmin Resources., before working as a junior geologist at the Red Mountain Project from 1992 through to 1994. McLeod was also previously the CEO of IDM Mining, who advanced the Red Mountain project through feasibility studies and permitting before being acquired by Ascot in 2019.
McLeod is also a co-founder of Nations Royalty Corp, Selkirk Copper Mines, and West Red Lake Gold Mines, and serves as a director to Nations Royalty, Dolly Varden Silver, and Nexgold Mining.
Other leadership changes at Ascot include the appointment of Alex Morrison as Lead Director, while Ryan Wemark will join as Executive Vice-President and Tally Barmash will take on the role of Corporate Secretary.
The appointments coincide with the closing of a first tranche of a private placement, which saw 133.59 million shares of Ascot sold at a price of $0.60 per unit for gross proceeds of $80.1 million. Each unit consists of one common share and half of a common share purchase warrant, with warrants containing an exercise price of $0.85 per each and an expiry of 12 months from the date of issuance. $55.78 million of that offering is said to have been purchased by insiders.
At the same time, Ascot has also managed to secure a three year extension to an outstanding convertible facility in place with Nebari and a series of its funds. The debt has been extended to December 2028, in exchange for previous warrants issued to Nebari being repriced to $0.75 per share, the removal of vesting conditions on those warrants, and the extension of their expiry by three years. The cost overrun facility meanwhile had the maturity date extended by five years to December 2030, with similar changes to the associated warrants as seen in the convertible facility.
Terms have also been met with Sprott to extend a buyback option period associated with Sprott Private Resource Streaming and Royalty Corp to December 31, 2028, while lien settlements have been entered into with existing lien claimants in relation to the Premier Gold Mine.
“We are grateful to secured and legacy creditors, shareholders, new investors and Ascot’s Board and Management team for working with our team to restructure Ascot and supporting our new development vision for a high-grade gold producer near my hometown of Stewart, BC,” commented Robert McLeod, CEO of Ascot Resources.
“In the weeks ahead, the Company will announce detailed plans for development of the Company’s projects, additions to the management team as well as a corporate rebrand and proposed name change. In particular, we believe the rapid development of the high-grade, underground bulk-mineable Red Mountain Project is the key to the successful commissioning and operation of a centralized mill to process material from the multiple deposits in the Golden Triangle.”
Ascot Resources last traded at $0.73 on the TSX Venture.
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