Tudor Gold Corp. [TUD-TSXV, TUC-Frankfurt] said Bay Street billionaire Eric Sprott has increased his stake the company to 14.1% by investing in a non-brokered private placement of 4.2 million shares that raised $2.93 million. The shares are priced at 70 cents each.
Proceeds from the sale of the flow-through shares will be used to fund exploration at the company’s Treaty Creek project, which is located in British Columbia’s Golden Triangle area.
Tudor said the initial subscribers in the flow-through shares, sold their shares to certain end holders, including Eric Sprott, who acquired the shares through 2176423 Ontario Ltd. Tudor said Sprott acquired 4.14 million flow through shares. As a result, he beneficially owns 20.2 million common shares and 11.5 million common share purchase warrants, representing approximately 14.1% of the issued and outstanding shares on a non-diluted basis, and 20.5% on a partially diluted basis, assuming the exercise of warrants.
That’s up from 11.2% (non-diluted) and 17.8% (on a partially diluted basis). The shares were acquired by Sprott for investment purposes with a long-term view of the investment.
On Tuesday, Tudor Gold shares eased 2.6% or $0.02 to 76 cents. The shares are currently trading in a 52-week range of 23 cents and $1.07.
Tudor Gold holds a 60% stake in the Treaty Creek joint venture and 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.
The 17,913-hectare Treaty Creek Project borders Seabridge Gold Inc.’s [SEA-TSX, SA-NYSE] KSM property to the southwest and borders Pretium Resources Inc.’s [PVG-TSX] Brucejack property to the southeast. The past-producing Eskay Creek mine lies 12 kilometres to the west.
Exploration of the Treaty Creek area over the past 30 years by various junior companies has resulted in the discovery of a number of surface mineral showings, some with very high gold and silver values.
There have been over 150 diamond drill holes completed on the property from 1987 to date, in eight different mineral zones. However, it is only recently that drilling revealed the potential for a large-scale porphyry-style gold deposit at the Copper Belle and Goldstorm zones, which are located on trend and just five kilometres northeast of the KSM deposits.
In a press release on December 16, 2019, Tudor Gold said it had discovered a significant new copper-silver horizon within the Goldstorm system.
“The newly discovered copper-rich CS 600 Horizon is a very important feature of the Goldstorm System,” said Ken Konkin vice-president of project development at Tudor Gold. “The presence of copper and silver mineralization gives this discovery a true polymetallic nature yet it remains a gold-dominant project.”