The first new gold mine to be built in B.C. in about seven years is 90 per cent complete and aiming to pour first gold by the end of April.
In an update today, Ascot Resources Ltd. (TSX: AOT, OTCQX:AOTVF) said its Premier gold mine was nearing completion and also announced closing on a US$50 million financing agreement with Sprott Resource Streaming and Royalty Corp.
Ascot said it had also closed on a previously announced bought deal, worth $29 million, with a syndicate of underwriters co-led by BMO Capital Markets and Desjardins Capital Markets and which includes CIBC World Markets Inc., Raymond James Ltd. and Velocity Trade Capital Ltd.
"With project construction nearing completion and early commissioning underway, we eagerly anticipate progressing to the production and operations phase at the Premier Gold Mine,” Ascot CEO Derek White said in a press release.
“The project also accomplished an impressive safety milestone, having surpassed one million hours without a lost time incident, along with another quarterly reduction in total recordable incident frequency.
“We are also proud to have recently closed an additional financing package which we believe is sufficient for the company to progress from construction to first gold pour, ramp-up, commercial production and steady-state operations. With the gold price still trading near US$2,000 per ounce, this is an opportune time for us to become Canada’s next gold producer.”
The last gold mine to go into operation in B.C. was the Brucejack mine.
The Premier gold mine is located in northwestern B.C. near Stewart.
(This story has been updated to correct the date of Ascot's anticipated first gold pour to the end of April, not March. Also, the US$50 million financing deal with Sprott Resource Streaming and Royalty Corp. is not a streaming agreement but a US$30 million royalty restructuring and US$20 million cost overrun facility.)
