/NOT FOR DISTRIBUTION TO UNITED
STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
VANCOUVER, July 29, 2014 /CNW/ - Alexco Resource Corp.
(TSX:AXR, NYSE-MKT:AXU) ("Alexco" or the "Company") is pleased
to announce that it has entered into an agreement with Canaccord
Genuity Corp. (the "Underwriter"), pursuant to which the
Underwriter has agreed to purchase, on a bought deal basis pursuant
to a short form prospectus, 4,350,000 units (the "Units") of the
Company at a price of C$1.15 per Unit
(the "Offering Price") for gross proceeds of C$5,002,500 (the "Underwritten Offering").
Each Unit shall consist of one common share of the Company and one
half of one common share purchase warrant (each whole common share
purchase warrant, a "Warrant"). Each Warrant shall be
exercisable into one common share of the Company for a period of 24
months from the Closing Date (as herein defined) at an exercise
price of C$1.40.
In addition, the Company has granted the
Underwriter an option (the "Over-Allotment Option" and together
with the Underwritten Offering, the "Offering") to purchase
additional Units and/or additional Warrants, up to such number of
additional Units and additional Warrants as is equal to 15% of the
Underwritten Offering, for a period of 30 days after and including
the Closing Date to cover over-allotments, if any, and for market
stabilization purposes.
The net proceeds from the Offering are expected
to be used by the Company for exploration and development of the
Company's projects and for general working capital purposes.
Closing of the Offering is anticipated to occur
on or around August 21, 2014 (the
"Closing Date") and is subject to certain conditions including, but
not limited to the receipt of all applicable regulatory approvals
including approval of the TSX and the NYSE-MKT.
About Alexco
Alexco Resource Corp. owns the Bellekeno silver
mine, one of several mineral properties held by Alexco which
encompass substantially all of the historical Keno Hill Silver
District located in Canada's
Yukon Territory. Employing a
unique business model, Alexco also provides mine-related
environmental services, remediation technologies and reclamation
and mine closure services to both government and industry clients
through the Alexco Environmental Group, its wholly-owned
environmental services division.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill Silver
District was a world-class silver producer, with more than 217
million ounces of silver produced at average grades of 40.5 ounces
per ton silver, 5.6% lead and 3.1% zinc (Yukon Government's Minfile
database). These historical production grades would rank
Keno Hill in the top 3% by grade of
today's global silver producers.
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
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any securities laws of any state of the
United States and may not be offered or sold within
the United States or to, or for
the account or benefit of, U.S. persons (as defined in Regulation S
under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or pursuant to
an exemption from such registration requirements.
Some statements ("forward-looking
statements") in this news release contain forward-looking
information concerning the Offering and the use of proceeds
thereof, the Company's anticipated results and developments in the
Company's operations in future periods, planned exploration and
development of its properties, plans related to its business and
other matters that may occur in the future, made as of the date of
this news release. Forward-looking statements may include, but are
not limited to, statements with respect to the proposed Unit
offering, anticipated closing of the Unit offering, potential
exercise by the Underwriter of the over-allotment option,
anticipated use of proceeds, future development activities, future
mine operation and production, the anticipated timing of making a
production decision in the Eastern Keno Hill Silver District
including recommencement of production at the Bellekeno mining
operation. 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 regulatory approval of the Offering;
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
regulatory approval of the Offering will be obtained in a timely
fashion, 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.
SOURCE Alexco Resource Corp.