/NOT FOR DISTRIBUTION TO
The Company issued 6,100,000 units ("Units") at a price of
The Company granted Canaccord an over-allotment option to purchase (i) up to 915,000 additional Units, (ii) up to 457,500 additional Warrants, or (iii) a combination of both, provided the maximum number of securities issued does not exceed 15% of the Offering, for a period of 30 days after and including the closing date of the Offering, to cover over-allotments and for market stabilization purposes.
Canaccord received a cash fee equal to 6.5% of the gross proceeds from the Offering and 396,500 compensation warrants (the "Compensation Warrants"), with each Compensation Warrant exercisable for one common share of the Company at an exercise price of
The net proceeds from the Offering will be used by the Company for exploration and development activities on the Company's Flame & Moth deposit and for general working capital purposes.
Further details regarding the Offering are contained in the Company's short form prospectus dated August 15, 2014.
Keno Hill Silver District History
Between 1921 and 1988, the
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including in
Some statements ("forward-looking statements") in this news release contain forward-looking information concerning the anticipated use of proceeds from the Offering, the potential exercise by Canaccord of the over-allotment option, the Company's planned exploration and development activities of its properties, and future mine operation and production. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to Alexco's ability to raise additional capital; actual results and timing of exploration and development activities; actual results and timing of mining activities; actual results and timing of environmental services activities; actual results and timing of remediation and reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of silver, gold, lead, zinc and other commodities; possible variations in mineable resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; First Nation rights and title; continued capitalization and commercial viability; global economic conditions; competition; and delays in obtaining governmental approvals or financing or in the completion of development activities. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that the proceeds from the Offering will be spent as allocated, that the Company will be able to raise additional capital, that the proposed exploration and development will proceed as planned, and that market fundamentals will result in sustained silver, gold, lead and zinc demand and prices. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.