Ascot Resources, a Canadian exploration and development firm, has secured $105m construction finance package for the Premier Gold project in northern British Columbia, Canada.

The financing was obtained from Sprott Private Resource Lending II and Beedie Investments for the development of the project.

It consists of a senior credit facility for $80m provided by Sprott, and a subordinated convertible facility for $25m provided by Beedie and Sprott.

Ascot president and CEO Derek White said: “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.

“Combined with the equity financing completed in June, this package secures approximately US$45 million of immediate funding enabling us to order long lead-time equipment, undertake pre-construction activities, advance permitting and refinance our existing convertible note.”

Located 25km from the town of Stewart, British Columbia, the Premier gold project consists of a land position of 8,133ha with three key deposits.

The three brownfield underground deposits are Premier, Silver Coin, and Big Missouri, which had historical mining activities and underground access.

As of April 2020, the proven and probable reserves of the project were estimated to be 3.63 million tonnes (Mt) grading 5.45g/t gold and 19.11g/t silver.

The asset was acquired by Ascot from the Swedish mining company Boliden through an agreement signed in June 2009.

Opened in 1918, the Premier underground mine was the largest gold mine in North America until its closure in 1952.