Alexco Resource Corp.
TSX : AXR

Alexco Resource Corp.

December 21, 2006 11:17 ET

Alexco Closes Private Placements With Canaccord and NovaGold

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 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 completed private placements with Canaccord Capital Corporation and NovaGold Resources Inc. (TSX:NG)(AMEX:NG). Pursuant to an agreement Canaccord has sold 1,684,300 Units on a "bought deal" basis, and 1,217,400 flow-through shares at a price of $4.75 per Unit and $5.75 per flow-through share for aggregate proceeds of $15,000,475. Each Unit consists of one common share and one half of one transferable common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of $5.75 per share for a period of 36 months. Canaccord also exercised an over-allotment option for 631,578 Units for gross proceeds of $3,000,000.

NovaGold Resources Inc. has purchased 1,048,500 Units on a non-brokered basis to maintain its pro-rata ownership of the Company. Contemporaneously, the Company has also sold on a non-brokered basis 385,000 Units having the same terms as the above.

The proceeds of the offering will be used for exploration on the Company's mineral properties. The securities sold in the offering will be subject to statutory and Toronto Stock Exchange hold periods.

In consideration for their services, the Canacccord has received a 6.5% cash commission and broker's warrant exercisable for 229,663 non-flow-through common shares. The broker warrant will be exercisable at a price of $5.00 per share for a period of 18 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
    or
    Alexco Resource Corp.
    Elaine M. Sanders
    Chief Financial Officer
    (604) 633-4888
    (604) 633-4887 (FAX)
    Email: info@alexcoresource.com
    Website: www.alexcoresource.com