Tudor Gold Corp. [TUD-TSXV; TUC-FSE] said Tuesday December 1 that it has raised $4.9 million from a non-brokered private placement of 1.45 million flow-through common shares priced at $3.40 per share.
Proceeds from the offering will be used to fund exploration at the companyâ€™s Treaty Creek Project in British Columbiaâ€™s Golden Triangle region.
Tudor shares were largely unchanged on the news, rising 0.7% or $0.02 to $2.98. The shares are currently trading in a 52-week range of $4.51 and 37.5 cents.
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-FSE], 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.
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.
As of October 26, 2020, 29 holes (24,343 metres) had been reported with results from another 12 pending.
Bay Street billionaire Eric Sprott recently 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 were priced at 70 cents each.