Ascot Resources Ltd. has announced a significant financing strategy to advance the development of its gold mines in northwestern British Columbia . The company plans to raise approximately C$40 million (US$29.2 million) to restart operations at the Premier Northern Lights (PNL) mine and the Big Missouri (BM) mine, which are currently on temporary maintenance status.
The Vancouver-based Canadian miner has reached key agreements with both its secured creditors and major investors, including Sprott Private Resource Streaming and Royalty (B) Corp. and Nebari Gold Fund.
These creditors have agreed to provide up to US$11.25 million in new senior debt , which will allow the company to move forward with its mining revival plans. In addition, Ascot has entered into an agreement with a syndicate of dealers, led by Desjardins Capital Markets and BMO Capital Markets, for a private placement seeking to raise between C$25 and C$35 million in equity capital.
Ascot boosts gold mines with investment
The company’s primary goal is to restart gold production in the second quarter of 2025. Ascot had already achieved a major milestone in April 2024, when it achieved first gold production at the Premier Mine, located on the Nisga’a Nation Treaty Lands. However, financial challenges forced the company to temporarily suspend operations.
With this new injection of capital and debt, Ascot expects to complete approximately 2,400 metres of development at the PNL mine , as well as restart the mill and ensure a sustainable supply of ore from both the Premier mine and Big Missouri.
Financing details
The financing agreement includes several conditions, including the successful completion of definitive agreements and obtaining necessary regulatory approvals, including from the Toronto Stock Exchange (TSX). The debt terms include a 12% interest rate on the second tranche of financing, which will accrue until May 2025. In addition, certain major shareholders, such as Ccori Apu SAC, are expected to participate significantly in the equity financing.
Ascot CEO Derek White said the funding package will enable the company to sustainably restart its mine operations, with a view to restarting gold production by mid-2025 . However, the company stressed that there is no guarantee that all the conditions necessary for the execution of the development plan will be met.
The restart of Ascot’s mining operations in British Columbia’s Golden Triangle region marks a significant step forward for gold mining in Canada. With the necessary financial support, the company expects to stabilize production and generate value for its shareholders, while reinforcing its commitment to sustainable development on Indigenous lands.
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Source: Ascot Resources
Photo: Shutterstock
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