Ascot Resources Ltd. (TSX:AOT) has secured $52.5 million in equity and debt financing towards the restart of its Premier Northern Lights gold mine and mill in Northeastern B.C.
In April, Ascot Resources poured first gold at the Premier Northern Lights mine and said it expected to be in full commercial production by the end of July. The mine's capital costs were estimated at $340 million.
Four months later, in September, Ascot announced it was putting the new mine into care and maintenance to focus on the development of its Big Missouri mine.
Delays in developing both the Premier and Big Missouri mines meant insufficient ore production to “adequately feed the mill,” the company said.
Ascot today announced it has closed on US$7.5 million ($10.5 million Canadian) in debt financing from Sprott Private Resource Streaming and Royalty (B) Corp., and $42 million in equity financing from a syndicate co-led by Desjardins Capital Markets and BMO Capital Markets and which includes Raymond James Ltd. and Velocity Trade Capital Ltd.
Under the equity financing, Ascot has issued of 262,500,000 common shares at $0.16 per common share.
Ascot said it will use the $52.5 million in financing to complete the Premier Northern Lights mine and restart its mill.
“The company is focused on completing the development of our second mine, Premier Northern Lights, and has agreed to a focused development program with its mining contractor, Procon Mining and Tunneling Ltd., so that mill operations can restart in Q2 of 2025,” Ascot CEO Derek White said in a news release.
“With both the Premier Northern Lights and Big Missouri mines feeding the mill, Ascot anticipates it can sustainably deliver enough ore feed to profitably run the operation.”
