Alexco Resource Corp. secured a US$15 million credit facility for the development of its Keno Hill silver project in Canada's Yukon Territory.

"Alexco continues underground development of the Bermingham and Flame & Moth deposits as well as refurbishment of the district mill at Keno Hill," CEO and Chairman Clynt Nauman said.

The company said Feb. 26 that it signed a definitive agreement with Sprott Private Resource Lending (Collector) LP for a three-year facility maturing Feb. 23, 2021, which is repayable in quarterly installments starting Oct. 31, 2019. The company also has an option to extend the drawdown period from 12 months to 18 months in exchange for 171,480 common shares.

Alexco can repay the facility in whole or in part without penalty if it has paid at least 12 months of interest on any outstanding amount.

The interest rate on drawn funds will be the greater of either 7% plus the three-month U.S. dollar London Interbank Offered Rate, or 8% per annum payable monthly. An additional charge equivalent to 3% of the drawn amount will also be payable upon drawdown.

Alexco issued 1 million share purchase warrants to Sprott as part of the deal. The warrants are exercisable at C$2.25 per share for five years, subject to an acceleration clause.

A March 2017 preliminary economic assessment on Keno Hill defined an eight-year operation producing 25.1 million ounces of silver, 77.3 million pounds of zinc, 67 million pounds of lead and 4,870 ounces of gold.