The stock of Ascot Resources Ltd (OTCQX: AOTVF) gained significantly as it increased by 20.50% to $0.8858 at last close. The Ascot stock price rose 20.76% during the last week, compared to a performance of 21.34% for the past month. The AOTVF stock price increased in the absence of recent news, so there may be some reason to believe that recent developments will reveal more information about the AOTVF.
Recently, what has happened?
Ascot is a Canadian mining company focused on entering the Gold Triangle region of British Columbia in order to reopen the historic Premier gold mine. In addition to exploring for underground resources on its Premier/Dilworth and Silver Coin properties, AOTVF continues to define high-grade resources with a near-term goal of converting the underground resources into reserves.
Last month, Ascot announced the close of a previously announced private placement. AOTVF sold 24,000,000 common shares at a price of $0.86 per share for gross proceeds to the company of $20,640,000. On non-diluted basis, Yamana Gold Inc. now owns approximately 6.4% of AOTVF’s common shares.
An underwriting agreement:
This private placement financing was conducted pursuant to an underwriting agreement between Ascot (AOTVF) and Stifel GMP, which provided that Stifel GMP purchased Shares at the Offering Price. In exchange for purchasing the Shares of AOTVF from the Offering, Yamana agreed to act as the substitute purchaser.