Alexco Resource (TSX: AXU; NYSE: AXU) has announced a bought deal public offering worth at least $25 million with which to advance work at its Keno Hill silver project in Yukon. The company will issue 7.1 million common shares at $3.50 per share.
The offering is underwritten by a syndicate co-led by Cormark Securities and Cantor Fitzgerald Canada. The underwriters have been granted an option to purchase additional shares equal to 15% of the original number of shares at the same prices for 30 days.
Alexco shipped the first Keno Hill silver-lead and zinc concentrates earlier this year. Annual output is expected to be about 4.4 million oz. of silver, rising to 5 million oz. in 2024. The proven and probable reserves currently stand at 1.4 million tonnes grading 804 g/t silver, 3.84% zinc and 2.64% lead, containing 37.2 million oz. of silver. An updated mineral resource estimate is expected in the fourth quarter.
The Keno Hill district has produced more than 200 million oz. of silver since 1913. Production ceased in 1989 due to falling metal prices and increased environmental demands. Alexco has been working in the district since 2006.
More information is available at www.AlexcoResource.com.