Ascot raises C$200M for Premier
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The financing will consist of a US$110 million gold and silver streaming agreement, and a C$45 million strategic equity investment structured as Canadian Development Expenditures flow-through shares, so the total proceeds will be C$50 million.
"We are thrilled to have found an attractive financing solution to complete construction. … Ascot can advance towards production with minimal debt. … The company considers Ccori Apu's investment as a strong vote of confidence from an experienced underground gold mining company," said Ascot Resources president and chief executive Derek White.
Global Atomic homes in on Dasa financing
SPONSOREDglobal atomic corp
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SPONSOREDDenison eyeing low-cost in-situ recovery in Canada's high-grade Athabasca Basin
SPONSOREDdenison mines
Feasibility Study Imminent at Fission's High-Grade, Low-Cost Uranium Project
SPONSOREDfission uranium
Ascot is looking at peak annual production of 180,000oz gold-equivalent from a restart of operations centred on its Premier and Red Mountain gold projects.
The streaming agreement will see Sprott Resource Streaming and Royalty receive 8.75% of gold production and 100% of silver production at 10% of prevailing prices. The existing 10% gold streaming agreement with Sprott Streaming will be altered to be part of the new stream.
The restructured stream reduces the gold stream from 10% to 8.75%, adds 100% of silver production, and reduces the ongoing payments from US$1,000/oz gold to 10% of the spot price. Once 150,000oz of gold has been delivered, the stream is reduced by 50% to 4.375% and 50%, respectively.
Ascot will also have the right to buy back 50% of the stream for US$80 million before the end of December 2026.
The strategic investment will see Peru's Ccori Apu take a 19.9% interest in Ascot. Ccori Apu is the majority shareholder of Compañía Minera Poderosa, which owns and operates a 300,000ozpy gold mine in northern Peru. Ccori Apu will have the right to nominate up to two people to Ascot's board.
Shares in Ascot Resources jumped 21% in early trading to C$47c, valuing the company at C$207 million.