Tudor Gold upsizes bought deal to $16 million

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Tudor Gold Corp. [TUD-TSXV, TUC-Frankfurt] said Friday it is increasing the size of a previously announced bought deal financing to $16 million with proceeds earmarked for exploration on properties in British Columbia.

The bought deal has been upsized from the previous $10 million target. Tudor said financier Eric Sprott, through an Ontario numbered company, has indicated his intention to subscribe to the offering..

News of the financing comes after Tudor Gold recently announced an updated resource estimate for the Goldstorm Deposit at the company’s Treaty Creek project in the Golden Triangle area of B.C.

The new estimate pegs the indicated resource at 23.37 million ounces of gold equivalent (AuEq) within 641.93 million tonnes at a grade of 1.13 g/t AuEq. On top of that is an inferred resource of 7.35 million ounces of AuEq within 233.9 million tonnes at a grade of 0.98 g/t AuEq.

The 17,913-hectare Treaty Creek project borders Seabridge Gold Inc.’s [SEA-TSX, SA-NYSE] KSM property, which ranks as 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.

Tudor Gold said the offering consists of the following combination:

  • Flow-through units priced at $1.28 per unit. Each flow through unit will consist of one common share that will qualify as flow-through shares under the Income Tax Act (Canada) and one-half of one common share purchase warrant;
  • Flow through units to be sold to charitable purchasers for $1.60 per charity flow through unit. Each charity flow through unit will consist of one common share that will qualify as flow-through shares under the Tax Act 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 $1.60 per warrant share at any time up to 24 months after the offering closes.

The offered securities to be issued under the offering will be offered by way of private placement in each of the provinces of Canada.

The underwriters will have an option to offer for sale up to an additional 15% of the number of offered securities sold in the offering. That option will remain open for up to 48 hours prior to the closing date of the offering which is expected to be during the week of April 12, 2023.

Details of the financing were announced after the close of trading on March 22, 2023. On Friday, the shares eased 7.8% or 10 cents to $1.18 on volume of 186,250. The shares are currently trading in a 52-week range of $2.03 and 85 cents.

Tudor Gold holds 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.

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