Mr. Derek White reports
ASCOT ANNOUNCES FLOW-THROUGH PRIVATE PLACEMENT FINANCING
Ascot Resources Ltd. has arranged a non-brokered private placement offering with a consortium of accredited investors of up to three million common shares of the company that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) at a price of $1 per flow-through share for gross proceeds of up to $3-million, subject to regulatory approval.
In connection with the offering, the company will pay, subject to TSX Venture Exchange approval, a cash fee of 6.5 per cent of the gross proceeds raised by the finders and issue non-transferable warrants equal to 6.5 per cent of the flow-through shares sold pursuant to the efforts of finders. The finders' warrants will be exercisable at $1 per finders' warrant into common shares of the company for a period of 18 months from the closing of the offering.
The company has expanded its 2018 drill program and intends to use the funds from this offering to continue drilling through October, 2018.The gross proceeds from the issuance of flow-through shares will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures under the Income Tax Act (Canada), which will be renounced with an effective date no later than Dec. 31, 2018, to the initial purchasers of flow-through shares in an aggregate amount no less than the gross proceeds raised from the issue of the flow-through shares.The flow-through shares 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 company intends to make the offering available to existing shareholders in British Columbia under the existing shareholder exemption under B.C. Instrument 45-534 and in other Canadian jurisdictions that have adopted similar exemptions from the prospectus requirement. The company has set Sept. 6, 2018, as the record date for the purpose of determining existing shareholders entitled to purchase flow-through shares under the existing shareholder exemption. Subscribers purchasing flow-through shares under the existing shareholder exemption will need to represent in writing that they meet certain requirements, including that they were on or before the record date a shareholder of Ascot and are still a shareholder, and certain limitations will apply to the aggregate subscription amount unless the subscriber has received suitability advice from a registered investment dealer. In the event that the offering is oversubscribed, Ascot may increase the size of the offering, or allocate subscriptions on a pro rata basis, to those subscribers whose subscriptions were first received by Ascot.
The offering is expected to close on or about Sept. 27, 2018, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX-V and the applicable securities regulatory authorities.
About Ascot Resources Ltd.
Ascot Resources is a gold-and-silver-focused exploration company with a portfolio of advanced and grassroots projects in the Golden Triangle region of British Columbia. The company's flagship Premier project is a near-term high-grade advanced exploration project with large upside potential. Ascot Resources is poised to be the next Golden Triangle producer with an experienced and successful exploration, development and operating team, coupled with a highly regarded major shareholder.
We seek Safe Harbor.
© 2018 Canjex Publishing Ltd. All rights reserved.