Ascot Resources Ltd. (TSX: AOT) (OTCQX: AOTVF) is pleased to announce that it has closed its previously announced private placement. A total of 24,000,000 common shares of the Company were sold at a price of $0.86 per Share for gross proceeds to the Company of $20,640,000. Yamana Gold Inc. now holds approximately 6.4% of the Company’s issued and outstanding common shares on a non-diluted basis.
The private placement financing was conducted pursuant to an underwriting agreement between the Company and Stifel GMP, whereby Stifel GMP agreed to purchase the Shares at the Offering Price. Yamana agreed to be the substitute purchaser, acquiring all of the Shares sold under the Offering.
Derek White, President and CEO, commented, “This investment by Yamana demonstrates significant support in Ascot’s flagship Premier Gold Project by an experienced Canadian-based precious metals producer. We are pleased to be a part of their high quality portfolio of investments. We have had a very productive first quarter at Ascot, and with the recent capital raised, we anticipate starting our exploration and underground development activities as soon as practicable.”
The net proceeds from the Offering will be used to fund construction of the Company’s Premier Gold Project in British Columbia and working capital and general corporate purposes.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The Shares offered have not and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements.
About Ascot Resources Ltd.
Ascot is a Canadian-based exploration and development company focused on re-starting the past producing historic Premier gold mine, located in British Columbia’s Golden Triangle. The Company continues to define high-grade resources for underground mining with the near-term goal of converting the underground resources into reserves, while continuing to explore nearby targets on its Premier/Dilworth and Silver Coin properties (collectively referred to as the Premier Gold Project). Ascot’s acquisition of IDM Mining added the high-grade gold and silver Red Mountain Project to its portfolio and positions the Company as a leading consolidator of high-quality assets in the Golden Triangle.
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We acknowledge the [financial] support of the Government of Canada.