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Ascot raises C$200M for Premier

Ascot Resources has entered into non-binding letters of intent for C$200 million in project financing for the construction of the Premier Gold Project in British Columbia, Canada.
Ascot raises C$200M for Premier Ascot raises C$200M for Premier Ascot raises C$200M for Premier Ascot raises C$200M for Premier Ascot raises C$200M for Premier

Ascot Resources' Premier project in British Columbia, Canada

The financing will consist of a US$110 million gold and silver streaming agreement, and a C$45 million strategic equity investment structured as Canadian Development Expenditures flow-through shares, so the total proceeds will be C$50 million.

"We are thrilled to have found an attractive financing solution to complete construction. … Ascot can advance towards production with minimal debt. … The company considers Ccori Apu's investment as a strong vote of confidence from an experienced underground gold mining company," said Ascot Resources president and chief executive Derek White.

Ascot is looking at peak annual production of 180,000oz gold-equivalent from a restart of operations centred on its Premier and Red Mountain gold projects.

The streaming agreement will see Sprott Resource Streaming and Royalty receive 8.75% of gold production and 100% of silver production at 10% of prevailing prices. The existing 10% gold streaming agreement with Sprott Streaming will be altered to be part of the new stream.

The restructured stream reduces the gold stream from 10% to 8.75%, adds 100% of silver production, and reduces the ongoing payments from US$1,000/oz gold to 10% of the spot price. Once 150,000oz of gold has been delivered, the stream is reduced by 50% to 4.375% and 50%, respectively.

Ascot will also have the right to buy back 50% of the stream for US$80 million before the end of December 2026.

The strategic investment will see Peru's Ccori Apu take a 19.9% interest in Ascot. Ccori Apu is the majority shareholder of Compañía Minera Poderosa, which owns and operates a 300,000ozpy gold mine in northern Peru. Ccori Apu will have the right to nominate up to two people to Ascot's board.

Shares in Ascot Resources jumped 21% in early trading to C$47c, valuing the company at C$207 million.