Alexco Closes Cdn $ 28.75 Million Equity Financing

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VANCOUVER, June 10, 2021 / PRNewswire / – Alexco Resource Corp. (US NYSE: AXU) (TSX: AXU) (“Alexco“or the”Company“) is pleased to announce that it has closed the bought deal public offer previously announced (the”Offer“) with a syndicate of underwriters (the”Subscribers“) co-led by Cormark Securities Inc. and Cantor Fitzgerald Canada Corporation and comprising RF Lafferty & Co., Inc., AGP / Alliance Global Partners and Roth Capital Partners, LLC (collectively the”Subscribers“). With the full exercise of the underwriters’ over-allotment option, the Company issued a total of 8,214,450 common shares (the”Actions“) at the price of CA $ 3.50 by Action (the “Offer price“) for the gross product of $ 28,750,575.

In connection with the offering, the Company paid the Underwriters a cash commission equal to 1.5% on approximately $ 2.875 million of the total gross proceeds (representing the proceeds of sales to members of the President’s List) and a cash commission equal to 5.0% on the remaining gross proceeds of approximately $ 25.875 million.

The net proceeds from the sale of Shares will be used for development and site expenses at Keno Hill and for general corporate and working capital purposes, as further detailed in the Prospectus (as defined below. ) as posted on the Company’s profile at www.sedar.com.

The offering was made pursuant to a prospectus supplement dated June 7, 2021 the Company’s simplified base shelf prospectus dated November 2, 2020 (collectively, the “Prospectus“) in the provinces of British Columbia, Ontario, Alberta, Saskatchewan, and Manitoba, in United States on the basis of a private placement under an exemption from the registration requirements of the US Securities Act of 1933, as amended (the “U.S. Securities Law“) and the securities laws of applicable states and other jurisdictions outside of Canada and United States on an exempt basis.

The securities offered have not been and will not be registered under the US Securities Act or under the securities laws of any State of United States, and may not be offered or sold, directly or indirectly, or delivered within United States or to, or on behalf of or for the benefit of a U.S. person or person in United States, except in certain transactions exempt from the registration requirements of the US Securities Act and any applicable securities law of any state. United States. This press release does not constitute an offer to sell or a solicitation to buy such securities in United States, Canada or in any other jurisdiction where such offering, solicitation or sale is illegal. “United States” and “American person” are as defined in Regulation S under the US Securities Act.

About Alexco

Alexco is a Canadian primary silver company that owns and operates the majority of the Keno Hill Silver Historic District, in from Canada Yukon Territory, one of the richest silver deposits in the world. Alexco is currently switching Keno Hill to production and has started production and shipments of concentrates in the first quarter of 2021. Keno Hill is expected to produce an average of approximately 4.4 million ounces of silver per year from lead concentrates / high quality silver and zinc. Keno Hill retains significant growth potential and Alexco has a long history of expanding mineral resources from mining through successful exploration.

Please visit Alexco’s website at www.alexcoresource.com

Certain statements (“forward-looking statements“) in this press release contain forward-looking information regarding plans related to Alexco’s business and other matters that may arise in the future, made as of the date of this press release, including the intended use of the The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking statements. factors include, among others, risks associated with legislative and / or regulatory changes; risks and uncertainties associated with the COVID-19 pandemic, including, but not limited to, business closures, travel restrictions, quarantines and a general reduction in consumer activity; actual results and timing of exploration and development, mining, environmental servicesa ux and remediation and recovery activities; future prices of silver, gold, lead, zinc and other raw materials; possible variations in mineral resources, grade or recovery rate y; failure of the plant, equipment or processes to function as intended; accidents, industrial disputes and other risks of the mining industry; First Nations rights and title; continued capitalization and commercial viability; global economic conditions; competition; and delays in obtaining government approvals or funding or in completing development activities. Forward-looking statements are based on certain assumptions management believes to be reasonable at the time they are made. In making the forward-looking statements included in this press release, Alexco has applied several important assumptions, including, but not limited to, that the circumstances surrounding the COVID-19 pandemic, while evolving, will stabilize or at least will not get worse; that the extent to which COVID-19 may impact the Company, including, without limitation, disruptions to the mobility of Company personnel, costs associated with the implementation of health protocols and safety, increased labor and transportation costs and other related impacts, will not change in a materially adverse manner; that Alexco will be able to raise additional capital if necessary, that the proposed exploration and development activities will proceed as planned and that market fundamentals will result in sustained demand and prices for silver, gold, lead and zinc. There can be no assurance that forward-looking statements will prove to be correct and that actual results and future events could differ materially from those anticipated in such statements. Alexco expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

SOURCE Alexco Resource Corp.

Related links

www.alexcoresource.com



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