Ascot arranges $200M financing package for construction of the Premier gold project

Ascot Resources (TSX: AOT; OTC: AOTVF) has entered into non-binding letters of intent for a total of approximately $200 million in project financing for construction of the Premier gold project, located on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of northwestern British Columbia. 

The proposed financing package will consist of a US$110 million gold and silver streaming agreement with Sprott Resource Streaming and Royalty and/or its affiliates and an equity investment by Ccori Apu S.A.C of $45 million, a portion of which will be structured as Canadian development expenditures flow-through shares, such that the total gross proceeds to the company is $50 million. 

Ccori Apu’s shareholders are the majority shareholders of Compañía Minera Poderosa S.A., which owns and operates a high-grade gold mine in northern Peru and produces approximately 300,000 oz of gold per year. 

Ascot is also projected to provide an update on the construction plans for Premier Gold project and the path towards production, which is anticipated in early 2024.

The Premier underground mine opened in 1918 and was the largest gold mine in North America until its closure in 1952 producing 2 million oz. of gold and 45 million oz. of silver. PGP comprises a land position of 8,133 hectares with three key deposits and a number of exploration targets. The key deposits are Premier, Silver Coin and Big Missouri, which all had historical mining activities and underground access. 

In 2020, Ascot released a feasibility studied that outlined an 8-year mine life producing an annual average of 151,000 oz. of gold equivalent at an all-in sustaining cost of US$769 oz gold.

For more information, visit www.AscotGold.com.