Ascot Resources Ltd. provided an update on construction financing and development plans for its Premier Gold Project. In December 2020, as part of a total construction finance package of USD 105 million, the Company secured a USD 80 million senior credit facility with Sprott Private Resource Lending II, LP. After drawing down the initial USD 20 million tranche under the Senior Facility, Ascot was required to satisfy various conditions before drawing down the remaining USD 60 million.

However, the Company has been unable to reach an agreement with Sprott on the satisfaction of the drawdown conditions for the remaining USD 60 million of the Senior Facility. Therefore, the initial USD 20 million drawdown will remain outstanding and Ascot will pursue alternative financing options to replace the remainder of the Senior Facility. Until alternative financing can be secured Ascot will continue advancing the project with available liquidity.

The Company anticipates that commencement of underground development and advancement of other key construction areas will continue as previously planned. However, certain work packages may be placed on hold until the Company is able to secure alternative funding. While the resulting implications to the project are uncertain at this time, it is possible that there will be a delay to the initial production target of First Quarter 2023.

Upon closing of the Senior Facility agreement in December 2020, Ascot drew an initial tranche of US$20M. The remaining US$60M was to be drawn upon meeting various conditions including receipt of the Mines Act Permit and the Environmental Management Act Permit Amendments, obtaining additional funding necessary to reach project completion, and Sprott's approval of the detailed mine plan. In a recent review of the detailed mine plan, Sprott proposed certain technical conditions to be achieved.

In particular, one condition requires Ascot to have a significant portion of its 12-month ore inventory classified in the Proven Reserve category. Currently, all Reserves at PGP are classified as Probable. The Company cannot guarantee the reclassification of Reserves can be achieved in the required timeframe.

Therefore, the Company considers it prudent to seek alternative financing options.