Company Secures Funding to Develop “Northern Lights” Mine

By: Tomas Ronolski - AllPennyStocks.com News

Monday, November 18, 2024

This mining company is seeing Monday action after securing significant financing agreements to advance key projects—including restarting operations at two mines and supporting ongoing development efforts.

Ascot Resources Ltd. (TSX: AOT) (OTCQX: AOTVF) announced in a press release today the successful closure of its previously announced senior secured debt financing and amendments, including approximately US$7.5 million from Sprott Private Resource Streaming and Royalty (B) Corp. Additionally, the Ascot's secured creditors have extended the waiver and forbearance agreements until May 31, 2025. These measures enhance the firm's financial flexibility to support its ongoing projects.

Simultaneously, Ascot completed its “best-efforts” private placement of common shares, led by Desjardins Capital Markets and BMO Capital Markets, alongside Raymond James Ltd. and Velocity Trade Capital Ltd. Under the Equity Financing, Ascot issued 262,500,000 common shares at C$0.16 per share, raising approximately C$42 million in gross proceeds. Ccori Apu S.A.C acquired 86,500,000 shares, slightly increasing its participation from previous announcements.

The proceeds from these financings will support the development of the Premier Northern Lights mine, mill restart, and reactivation of the Big Missouri mine. Shares of Ascot were moving higher in morning trade.

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