Toronto-listed Ascot Resources has closed a $105-million project financing package with Sprott Private Resource Lending II and Beedie Investments, with the financing to be used to develop the past-producing Premier gold project, in northern British Columbia.

The financing will also be used to repay the existing Sprott Private Resource Lending, LP and Resource Income Partners Limited Partnership convertible notes on closing.

The financing is comprised of a senior credit facility for $80-million provided by Sprott, and a subordinated convertible facility for $25-million provided by Beedie and Sprott.

Combined with the equity financing completed in June, the package secures about $45-million of immediate funding, enabling Ascot to order long lead time equipment, undertake preconstruction activities, advance permitting and refinance the existing convertible note.

“We are very pleased with the financial commitments that Sprott and Beedie Capital have made towards the development of the project. We have achieved our objective of securing a flexible financing package on terms that are competitive and protect the upside for our shareholders. The optionality of repayment of both the senior facility and the convertible facility in a rising gold price environment provides the company financing flexibility,” said president and CEO Derek White.

The restart project is centred on the Premier and Red Mountain projects, near Stewart. The company will feed the Premier mill at 2 500 t/d to produce about 1.1-million ounces of gold and three-million ounces of silver over eight years, according to an April 2020 feasibility study.

The study is based on a proven and probable reserve of 6.2-million tonnes from the project. In addition to the reserves, the company has inferred resources of 5.1-million tonnes at 7.25 g/t at Premier, with about 2.2-million tonnes of this resource material at similar grade, near the planned development, which may potentially be converted to reserves during operations.