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UPDATE 1-Alexco Resources ups bought deal to C$41 mln; shrs fall
December 7, 2010 / 6:47 PM / 7 years ago

UPDATE 1-Alexco Resources ups bought deal to C$41 mln; shrs fall

* Increases bought deal offering from C$30.8 mln

* Previous offering priced at C$8.20/shr

* Shares down 9 pct

Dec 7 (Reuters) - Alexco Resource (AXR.TO) said it was increasing its bought-deal offering by 33 percent to C$41 million and priced it at a discount, sending the mineral explorer’s shares down 9 percent.

Alexco Resources had earlier said it was planning to raise C$30.8 million by offering 3.75 million shares at C$8.20 each, a discount of about 9 percent to Monday’s close.

The offering, which is expected to close by Dec. 23, was mainly to fund its project development and exploration activities in the Yukon territory in Canada.

The company said the underwriters, led by Canaccord Genuity Corp, had an over-allotment option, which if fully exercised could increase the proceeds to C$47.2 million.

Alexco Resources’ shares were down 9 percent at C$8.17 in mid-day trade, making it a top percentage loser on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Jarshad Kakkrakandy)

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