|Alexco Resources Corp. - AXR.t owns the historic Keno Hill Silver District, located in Canada's Yukon Territory. The Bellekeno silver mine, one of the world's highest-grade silver mines, commenced commercial production at the beginning of calendar year 2011 and was Canada's only operating primary silver mine from 2011 to 2013.|
Alexco is currently in interim suspension of operations at Bellekeno.
Alexco Resource Corp. (TSX:AXR, NYSE MKT:AXU) ("Alexco" or the "Company") announces that it has closed the previously announced non-brokered private placement of units of the Company ("Units") at a price of C$1.20 per Unit (the "Private Placement") pursuant to which the Company issued 10,839,972 Units for aggregate gross proceeds of C$13,007,966.
Each Unit consisted of one common share and one-half of one non-transferable common share purchase warrant (each whole warrant, a "Warrant"), 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 "Trigger Date"), 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 "Acceleration Provision").
In connection with the Private Placement, the Company has paid Sprott Private Wealth LP and certain of its affiliates (collectively, "Sprott") a cash commission equal to 5% of the gross proceeds from the sale of 7.51 million Units sold to purchasers introduced by Sprott. Sprott also received an aggregate of 225,300 warrants ("Finder Warrants"). 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.