Tudor Gold Closes $9.3 Million Private Placement with Mr. Eric Sprott
Tudor Gold Closes $9.3 Million Private
Placement with Mr. Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - July 8, 2020) -
Tudor Gold Corp. (TSXV: TUD) (FSE:
TUC) (the "Company" or "Tudor Gold") is pleased to announce that it has completed a non-brokered
private placement of 6,652,700 common shares of the Company ("Private Placement") that will qualify
as "flow-through shares" (within the meaning of subsection 66 (15) of the Income Tax Act (Canada)) that
have been issued as part of a charity arrangement ("Charity FT Shares") at a price of $1.40 per Charity
FT Share for aggregate gross proceeds of C$9.3 million.
With the completion of the Private Placement, Mr. Eric Sprott was the back-end buyer of all of the shares
issued in connection with the Private Placement through 2176423 Ontario Ltd., a corporation which is
beneficially owned by him.
Following the closing of the Private Placement, Mr. Sprott beneficially owns
and controls 32,340,619 common shares, representing approximately 19.9% of the issued and
outstanding common shares of the Company on a non-diluted basis.
The Shares were acquired by Mr. Sprott for investment purposes and with a long-term view of the
investment. Mr. Sprott may acquire additional securities of the Company including on the open market,
or through private acquisitions, or sell securities of the Company including on the open market, or
through private dispositions in the future, depending on market conditions, reformulation of plans and/or
other relevant factors.
All securities issued pursuant to the Private Placement are subject to a statutory four-month hold period.
The Private Placement is subject to receipt of final approval of the TSX Venture Exchange.
Mr. Sprott is an insider of the Company and as such, his participation in connection with the Private
Placement is a "related party transaction" under the policies of the TSX Venture Exchange and
Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("MI 61-
101").
The Company is relying on exemptions from the minority shareholder approval and formal
valuation requirements applicable to the related party transactions under Sections 5.5(a) and 5.7(1)(a),
respectively, of MI 61-101, as neither the fair market value of the FT Shares to be purchased on behalf of
Mr. Sprott nor the consideration to be paid by him exceeds 25% of the Company's market capitalization.
The Company did not file a material change report in respect of the related party transaction at least 21
days prior to the closing of the Private Placement, which the Company deems reasonable in the
circumstances so as to be able to avail itself of the proceeds of the Private Placement in an expeditious
manner.
Any early warning report filed by 2176423 Ontario Ltd. on SEDAR will appear on the Company's profile
on SEDAR and may also be obtained by calling (416) 945-3294 (200 Bay Street, Suite 2600, Royal
Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).
In connection with the Private Placement, the Company has paid a finder's fee equal to 2% of the gross
proceeds of the Private Placement to Paradigm Capital Inc.
About Tudor Gold
Tudor Gold is a precious and base metals explorer with properties in British Columbia's Golden
Triangle, an area that hosts producing and past-producing mines and several large deposits that are
approaching potential development. The 17,913 hectare Treaty Creek project (in which Tudor Gold has
a 60% interest) borders Seabridge Gold Inc.'s KSM property to the southwest and borders Pretium
Resources Inc.'s Brucejack property to the southeast. The Company also has a 100% interest in the
Electrum Project, earn in options and 100% interests in other prospective projects located in the Golden
Triangle area.
"Walter Storm"
Walter Storm
President and Chief Executive Officer
For further information, please visit the Company's website at
www.tudor-gold.com
or contact:
Catalin Kilofliski
Director Corporate Development and Communications
Tel. 604-559-8092
Email:
or
Carsten Ringler
Manager Investor Relations
Phone: +49 1726918274
E-Mail:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/59331