Alexco Resource (TSX:AXR) has closed its previously announced private placement for proceeds of C$13 million.
As quoted in the press release:
Each Unit consisted of one common share and one-half of one non-transferable common share purchase warrant (each whole warrant, a âWarrantâ), each Warrant entitling the holder to purchase one additional common share of the Company at a price of C$1.75 until May 17, 2018. If, commencing on September 18, 2016, the closing price of Company’s common shares on the Toronto Stock Exchange is higher than C$2.50 for 10 consecutive trading days (the âTrigger Dateâ), the expiry date of the Warrants may be accelerated to the date that is 10 trading days after the Trigger Date by the issuance of a news release within two trading days of the Trigger Date announcing such acceleration (the âAcceleration Provisionâ).
In connection with the Private Placement, the Company has paid a Finder and certain of its affiliates (collectively, âFinderâ) a cash commission equal to 5% of the gross proceeds from the sale of 7.51 million Units sold to purchasers introduced by Finder. Finder also received an aggregate of 225,300 warrants (âFinder Warrantsâ). Each Finder Warrant is exercisable for one common share of the Company at a price of C$1.49 until May 17, 2018, subject to the Acceleration Provision. The Company also paid finder’s fees of $176,110 to other arm’s length finders, representing a cash commission equal to 5% of the gross proceeds received in respect of the sale of 2.94 million Units to purchasers introduced to the Company by such finders.
The net proceeds from the Private Placement are expected to be used by the Company for exploration and development activities on the Company’s assets and for general corporate purposes.
Get Our Expert Guide to Silver Investing FREE!
Download this FREE Special Report,Â When Will Silver Go Up: Is the Highest Price of Silver Still to Come?