Business
Ascot Resources Arranges C$25 Million Bought Deal Financing and US$50 Million Additional Funding for Completion and Ramp-Up of the Premier Gold Project
VANCOUVER, British Columbia, Jan. 22, 2024 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) is pleased to announce t
About this update from Cambria Gold Mines Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 22, 2024 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) is pleased to announce the Company has entered into non-binding term sheets for a total of approximately US$50 million in additional funding from Sprott Resource Streaming and Royalty Corp. and/or its affiliates (“Sprott Streaming” or “SRSR”) and Nebari Natural Resources Credit Fund II, LP (“Nebari Credit Fund II”). Additionally, the Company has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Desjardins Capital Markets (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to buy on a bought deal private placement basis, 56,820,000 Common Shares of the Company (the “Common Shares”) at a price of C$0.44 per Common Share, for gross proceeds of approximately C$25 million (the “Offering”). The proceeds from these additional funding sources will be used for the construction and operational ramp-up of the Premier Gold Project (“PGP” or the “Project”), to buy-back existing royalties, for additional working capital, and for general corporate purposes. The proposed financing package would consist of a royalty restructuring (the “Royalty Restructuring”) with Sprott Streaming for gross proceeds of US$30 million, a US$20 million cost overrun facility (the “COF”) with Nebari Credit Fund II, and the C$25 million Offering. FINANCE PACKAGE HIGHLIGHTS Royalty Restructuring: US$30 million gross proceeds for Ascot to grant and sell to SRSR a new 3.10% NSR royalty covering the PGP property package (the “Sprott Royalty”). Until the end of 2026, up to 50% of the new royalty can be repurchased for varying amounts depending on timing and cumulative production. C$13.7 million of the gross proceeds will be used to buy back two existing 5% NSR royalties on various PGP property claims, resulting in net proceeds of approximately US$20 million. Cost Overrun Facility: US$20 million from Nebari Credit Fund II to be drawn in full at closing, with maturity to be in June 2027. The interest rate would be 10.0% plus the greater of: (i) 3.5% and (ii) the three month secured overnight financing rate (“SFOR”) per annum. Nebari Credit Fund II will also be granted warrants to purchase Common Shares, as described below. Nebari Gold Fund Convertible Facilit...