Tudor Gold Corp. [TUD-TSXV, TUC-Frankfurt] said Wednesday it plans to complete a non-brokered private placement that is expected to generate $6 million for the company’s Treaty Creek project in British Columbia.
The company said the non-brokered private placement will consist of 555,555 flow-through common shares at $3.60 each and 1.33 million non-flow-through common shares priced at $3.00 per share.
Tudor said it has already raised $1.53 million by closing the first tranche of the private placement, issuing 426,000 flow-through shares at $3.60 per share. Aside from Treaty Creek, proceeds will also be used for working capital purposes.
Tudor Gold shares were lower Wednesday, easing 0.8% or $0.02 to $2.55. The shares are currently trading in a 52-week range of $4.51 and $1.50.
Tudor Gold is a precious metal and base metal exploration and development company with properties in B.C.’s Golden Triangle, an area that hosts producing and past producing mines as well as several large deposits that are approaching potential development.
Its key asset is a 60% stake in the Treaty Creek joint venture, where Tudor Gold 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.
Tudor Gold recently released a mineral resource estimate for the Goldstorm and Copper Belle zones at Treaty Creek.
The company said the constraining open-pit shell contains 14.15 million ounces of measured and indicated gold equivalent ounces at an average grade of 0.72 g/t gold equivalent and 5.26 million measured and indicated gold equivalent ounces at an average grade of 0.80 g/t gold equivalent for the out-of-pit mineral resource.
The estimate is based on 218 drill holes covering 105,658.8 metres.
Only 10-12% of the gold equivalent values are attributed to silver and copper mineralization indicating a strong gold-dominate system,th e company has said.
The company has also said plans for 2021 are to complete the drilling of the Goldstorm Zone; to define the limits of the 300 Horizon, the CS-600 and DS-5 Zones. In addition, diamond drilling is planned for the Eureka and Perfect Storm Zones.