Tudor Gold Corp. [TUD-TSXV, TUC-Frankfurt] said that due to strong investor demand, the company is increasing the size of a previously announced private placement of common shares and flow-through shares to $11.5 million.
The company had previously said it planned to raise $7 million with proceeds earmarked for its Treaty Creek project in British Columbia’s Golden Triangle area.
The offering will now consist of a combination of common shares priced at $2.10 per common share and common shares that will qualify as flow-through shares at $2.50 per flow-through share. Bay Street financier Eric Sprott has indicated his intention to subscribe in the offering, the company said in a press release.
The announcement came after the close of trading on October 12, 2021, when Tudor Gold shares were up 2.6% or $0.06 to $2.38. The shares currently trade in a 52-week range of $3.65 and $2.01.
It said the underwriting agent has been granted an over-allotment option to sell up to an additional 15% of the common and flow through shares sold in the offering.
The over-allotment option is exercisable at any time up to 48 hours prior to closing, likely on November 1, 2021.
Tudor Gold’s key asset is 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.
Treaty Creek is located in the same hydrothermal system as Seabridge Gold Inc.’s [SEA-TSX, SA-NYSE] KSM property and Pretium Resources Inc.’s [PVG-TSX] 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.
Tudor Gold recently released a third set of drill results (four new holes) for the 2021 resource expansion and definition drilling program at the Treaty Creek project’s Goldstorm deposit
Highlights include step-out drill hole GS-21-119, which the company said has successfully expanded the Goldstorm system to the northeast after returning 1.76 g/t gold equivalent (AuEq) over 196.5 metres within 564 metres containing 1.09 g/t AuEq.
New drill results were released after Tudor recently announced a mineral resource estimate for the Goldstorm and Copper Belle zones.
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.
However, as only 10-12% of the gold equivalent values are attributed to silver and copper mineralization indicating a strong gold-dominate system, the company has said further studies are required to investigate the potential economic impact of the silver and copper.