Tudor spinout Goldstorm Metals begins trading today

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Shares of Goldstorm Metals Corp [GSTM-TSXV], a company set up to hold Tudor Gold Corp.’s [TUD-TSXV, TUC-Frankfurt] 100% interest in the Goldstorm property in British Columbia, are set to begin trading on the TSX Venture Exchange today.

The purpose of this arrangement is to reorganize Tudor into two separate publicly traded companies, allowing Tudor to focus on its Treaty Creek project, which is located in B.C.’s Golden Triangle area.

Goldstorm will focus on the Crown property, which consists of six contiguous mineral properties known as Mackie East, Mackie West, Fairweather, High North, Delta and Orion, plus the mineral property known as Electrum.

Under the terms of the spinout arrangement, Tudor Gold shareholders on record as of November 10, 2022, will receive approximately 0.251 of a Goldstorm share for each of their Tudor Gold common shares.

Goldstorm will also issue 49.8 million shares to Tudor Gold as payment for the Crown property.

As a result, Goldstorm will cease to be a wholly-owned subsidiary of Tudor Gold, which will retain its remaining assets and working capital. It will continue as a precious metals exploration and development company.

On October 28, 2022, Goldstorm closed a previously announced non-brokered private placement of non-flow-through units, flow-through units and flow-through subscription receipts, a move that raised $3.9 million.

The company raised $2.8 million by issuing 10.8 million non-flow-through units at 26 cents each. The non-flow-through units consist of one common share and one common share purchase warrant.

The company raised an additional $101,525 by issuing 327,500 flow-through units, together with the non-flow-through units at an issue price of 31 cents each. The flow-through units consist of one common share and one warrant.

Another $990,264 was raised via the issuance of 3.2 million flow-through subscription receipts at an issue price of 31 cents per receipt. The subscription receipts entitle the holder to receive one flow-through unit (a SR unit), with each SR unit consisting of one common share and one warrant.

Each warrant entitles the holder to purchase one additional common share at an exercise price of 60 cents for up to two years from the date that the warrants were issued.

Financing proceeds will be used to fund exploration at the Crown property.

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.

On November 9, 2022, Tudor Gold shares closed unchanged at $1.36 and currently trade in a 52-week range of $2.32 and 85 cents.


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