Tudor Gold raising $20 million for B.C. gold
Tudor Gold Corp. [TUD-TSXV, TUC-Frankfurt] is moving to raise up to $20 million from a private placement offering with part of the proceeds earmarked for exploration drilling at the company’s key British Columbia property.
The company said the offering will consist of a combination of units priced at $2 per unit, each consisting of one common share and one half of a share purchase warrant; flow-through units priced at $2.40 per unit, each consisting of one common share that will qualify as a flow-through share; and flow through units to be sold to charitable purchasers for $2.85 per unit, each of which will qualify as flow-through shares that will be issued as part of a charity arrangement and one-half of one warrant.
Each warrant will entitle the holder to purchase one common share at an exercise price of $2.80 per warrant share at any time for up to 24 months following the closing date, likely on March 30, 2022.
Financier Eric Sprott, who already controls 17.6% of the company on a non diluted basis, is expected to participate in the offering.
Net proceeds from the sale of the flow through and charity flow-through units will be used to incur eligible Canadian exploration expenses at the company’s flagship Treaty Creek property which is located in the Golden Triangle area of northwest B.C.
The agents will have the option to offer for sale up to an additional 15% of the number of units (charity and flow-through) sold in the offering. That option is available at any time up to 48 hours prior to the closing date of the offering.
Details of the offering were released after the close of trading on March 10, when Tudor Gold shares closed at $2.08. The shares are currently trading in a 52-week range of $3.49 and $1.87.
Tudor Gold’s key asset is a 60% stake in the Treaty Creek joint venture. Tudor is the project operator. The other partners are American Creek Resources Ltd. [AMK-TSXV] and Teuton Resources Corp. [TUO-TSXV, TUC-Frankfurt], each of which hold a 20% stake in the project. American Creek and Teuton are both fully carried to a production notice. At that point, each of the two is required to contribute their respective 20% share of development costs.
Until that happens, Tudor is required to fund all exploration and development costs. The property is also subject to 3% net smelter return royalties.
Treaty Creek is located in the same hydrothermal system as Seabridge Gold Inc.’s [SEA-TSX, SA-NYSE] KSM property and Pretium’s Brucejack gold mine.
KSM is one of the world’s largest undeveloped gold projects as measured by reserves. It is estimated to contain 38.8 million ounces of gold and 10.2 billion pounds of copper in proven and probable reserves.