Ascot Resources (TSX: AOT) has seen Yamana Gold (TSX: YRI) take a notable stake in the company. The arrangement, lead by Stifel GMP, will see Yamana take a total stake of 6.4% in exchange for $20.6 million.
The investment, which on a technical level is being conducted on a bought deal basis financing, will see Yamana acquire a total of 24.0 million common shares of the issuer at a price of $0.86 per share. The acquisition follows Ascot closing a $61.0 million bought deal financing last week.
Proceeds from the offering will be used for the construction of Ascot’s Premier Gold Project in BC, as well as working capital and general corporate purposes. The offering is expected to close April 20, 2021.
The stake being taken by Yamana is reportedly occurring for investment purposes.
Ascot Resources last traded at $0.88 on the TSX.
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