Ascot raises $34 million from bought deal financing

Ascot Resources Ltd. [AOT-TSX, AOTVF-OTCQX] said it has raised $34 million from a bought deal financing with part of the proceeds earmarked for ongoing commissioning and ramp-up of the company’s Premier gold project, which is located in British Columbia’s Golden Triangle region.

The final amount raised is up from an earlier $20 million target.

Proceeds raised from the financing included the full exercise of the over-allotment option. The offering consisted of 30.2 million flow-through units priced at $0.496 per unit, and 44.18 million hard dollar units priced at 43 cents per unit.

Each offered security consists of one common share and one common share purchase warrant, each of which entitles the holder to acquire one share for 52 cents per warrant share for 24 months following the close.

Ascot shares moved lower on the news, easing 3.3% or $0.015 to 44 cents. The shares are currently trading in a 52-week range of 91 cents and 33.5 cents.

In a press release on July 3, 2024, containing details of its second quarter, 2024, results Ascot said initial commissioning material was introduced into the grinding circuit of the mill on March 31, 2024. Initial commissioning ore started to be processed on April 8, 2024, and first gold was poured on April 20, 2024.

During the remainder of the quarter, the company continued commissioning the mill, water treatment plant, and established the secondary underground egress at the Big Missouri deposit to commence production in its planned stoping area. The company also said many of the commissioning challenges encountered in the mill have been addressed, which is starting to demonstrate an increasing frequency and quantity of gold pours.

During the second quarter Ascot poured 839 ounces of gold and 1,288 ounces of silver. An estimated 3,178 ounces of gold-in-process remains in the mill circuit.

The Premier-Dilworth project is located 25 kilometres north of Stewart in the Golden Triangle area. The project is separated into two separate properties, including the northern Dilworth area and the southern Premier area, which contains what was once the largest gold mine in North America. The Premier underground mine closed in 1952 after producing 2.0 million ounces of gold and 45 million ounces of silver.

The Premier gold project covers a land position of 8,133 hectares with three key deposits and a number of exploration targets. The key deposits are Premier, Silver Coin and Big Missouri, which all had historical mining activities and underground access. Two smaller resource areas area known as Martha Ellen and Dilworth.

Total inferred resources currently stand at 1.18 million ounces of gold, 4.7 million ounces of silver or 1.2 million ounces of gold equivalent (AuEq). Total indicated resources stand at 1.06 million ounces of gold, 4.7 million ounces of silver or 1.09 million ounces of AuEq.

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