Silver Mines secures $20m investment from Lundin, Rule-led fund
The company's flagship project hosts the largest known undeveloped silver resource in Australia.
After closing a C$61 million bought deal on Friday (upsized from C$55 million), BC-focused gold-silver developer Ascot Resources (TSX: AOT) has announced a C$20.6 million ($16.4 million) private placement financing by miner Yamana Gold (TSX: YRI, NYSE: AUY).
Ascot has entered into an agreement with Stifel GMP, with Stifel purchasing, on a bought deal basis, 24 million Ascot shares at C$0.86 each. An underwriting agreement names Yamana as the substitute purchaser of all shares sold in this offering. The press release notes that Yamana is purchasing the shares “for investment purposes” and, on closing, will hold approximately 6.4% of the Ascot shares outstanding.
According to president and CEO Derek White, these additional funds are expected to accelerate the company’s surface and exploration program during construction at its past-producing Premier gold project in BC’s Golden Triangle.
Closing is expected around Apr. 20. Shares sold in the prior offering, announced at the end of March, were also offered at C$0.86 each. In December, Ascot also closed a $105 million project financing package with Sprott Private Resource Lending and Beedie Investments.
A feasibility study from April 2020 on a development of both the Premier and Red Mountain projects outlined an eight-year mining operation producing an average of 132,375 oz. of gold and 370,500 oz. of silver annually at all-in sustaining costs of $769 per oz. with an initial capital cost estimate of C$146.6 million.
An exploration and underground development program at Premier is scheduled to start between June and July and would be followed by a 12-month construction period expected to kick off in the third quarter.
(This article first appeared in the Canadian Mining Journal)
