Alexco Resource Corp.

Alexco Resource Corp.

March 27, 2006 08:50 ET

Alexco Announces Flow-Through Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2006) -

Not for Distribution to U.S. Newswire Services or for Dissemination in The United States

Alexco Resource Corp. (TSX:AXR) ("Alexco or the Company") has entered into a guaranteed agency agreement with Canaccord Adams for the sale of 1,276,596 flow-through common shares at a price of $2.35 per share for gross proceeds of $3 million. The Company also intends to sell on a non-brokered basis up to 425,532 flow-through common shares at a price of $2.35 per share for gross proceeds of up to $1 million.

The offering is scheduled to close on or about April 27, 2006. The offering is subject to, among other things, receipt by Alexco of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange. The proceeds of the offering will be used for exploration on the Company's mineral properties. The common shares sold in the offering will be subject to statutory and Toronto Stock Exchange hold periods.

In consideration for their services, the agent will receive a 6.5% cash commission and a broker warrant exercisable for non-flow-through common shares equal to 6.5% of the number of flow-through common shares sold in the offering. The broker warrant will be exercisable at a price of $2.35 per share for a period of 12 months following the closing date.

About Alexco

Alexco's business is to unlock value and manage risk at mature, closed or abandoned mine sites through integration and implementation of the Company's core competencies and skills which include management of environmental services, execution of mine reclamation and closure operations and if appropriate, rejuvenation of exploration and development activity.

Some statements in this press release contain forward-looking information. These statements include, but are not limited to, statements with respect to the entering into of agreements, the closing of transactions and the expenditure of funds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of transactions, the ability to fulfill certain conditions, the ability to raise funds and the timing and amount of expenditures.

Contact Information

  • Alexco Resource Corp.
    Clynton R. Nauman
    President and Chief Executive Officer
    (604) 633-4888
    Alexco Resource Corp.
    Elaine M. Sanders
    Chief Financial Officer
    (604) 633-4888