Ascot Resources Announces Flow-Through and Common Share C$10 Million Private Placement

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VANCOUVER, British Columbia, Feb. 05, 2020 (GLOBE NEWSWIRE) -- Ascot Resources Ltd (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) is pleased to announce a non-brokered private placement offering (the “Offering”) of up to 7,812,500 common shares (the “Common Shares”) and up to 5,102,041 flow-through shares (the “FT Shares” and together with the Common Shares, the “Securities”) for aggregate gross proceeds of C$10,000,000. Each Common Share is offered at a price of C$0.64 and each FT Share is offered at a price of C$0.98.

Derek White, President and CEO, commented, “I’m pleased with the support that Ascot has received from its existing shareholder base. The flow-through shares raised at a premium to our current share price reduce dilution and will fund Ascot’s 2020 exploration program. The remaining funding will be utilized to advance the permitting process and progress the project towards construction.”

The net proceeds from the Offering will be primarily used to fund exploration activities, permitting, engineering and economic studies and for general corporate and working capital purposes. The gross proceeds from the issuance of FT Shares will be used for “Canadian exploration expenses”, and will qualify as “flow-through mining expenditures” as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2020 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares.

The Securities issued in the Offering will be subject to a hold period expiring four months and one day from the closing date of the Offering.

The closing of the Offering is expected to occur on or before February 20, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the Toronto Stock Exchange. Agentis Capital Markets Canada Ltd. (“Agentis”) is acting as financial advisor to Ascot on the Offering. A total fee of up to 6% will be paid from the proceeds raised from the Common Shares.