Private Placement Completed—Sprott invests $9 million
TEUTON RESOURCES CORP.
2130 Crescent Road
Victoria, BC V8S 2H3
Phone: (778) 430-5680
Website: www.teuton.com
NEWS RELEASE
Private Placement Completed—Sprott invests $9 million
August 7, 2020 -- Vancouver, BC: Teuton Resources Corp. (“Teuton” or “the Company”) (“TUO”-TSX-V)
("TUC"- Frankfurt) announces that it has completed a non-brokered private placement of 3,000,000 shares at a
price of $3.00 per share for gross proceeds of $9,000,000. All securities issued pursuant to the private placement
are subject to a statutory four-month hold period. The private placement was approved by the TSX-V on July 31,
2020, subject to satisfactory closing . There are no finder’s fees or other commissions associated with the
transaction. The proceeds of the financing will be used to explore the Company’s many properties in the Golden
Triangle region of northwestern British Columbia, to invest in acquiring new resource opportunities within the
Golden Triangle, and for general working capital.
Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 3,000,000
shares pursuant to the private placement (no warrants were acquired). After closing of the private placement, Mr.
Sprott now beneficially owns or controls 9,640,000 shares and 3,500,000 pre-existing, share purchase warrants
representing approximately 19.3% on a non-diluted basis and 24.6% on a partially diluted basis assuming exercise
of all pre-existing warrants. Prior to the Offering, Mr. Sprott beneficially owned or controlled 6,640,000 common
shares and 3,500,000 share purchase warrants. Mr. Sprott has signed an undertaking not to exercise his warrants
until such time as the Company can obtain shareholder approval (from di sinterested shareholders) of the new
control person which will be created once Mr. Sprott passes 20% ownership; the Company has agreed to call a
shareholders’ annual general meeting prior to Oct. 15, 2020 at which such approval will be sought. Mr. Sprott
has also signed a Support Agreement with the Company in regard to a merger, take-over bid, amalgamation, plan
of arrangement, business combination or similar transaction which may arise over the next two years.
The shares were acquired by Mr. Sprott, through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a
long-term view of the investment and 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. A copy of 2176423 Ontario Ltd.’s early warning report 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 2J1)
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 Holder s in Special Transactions. 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 shares to be
purchased on behalf of Mr. Sprott nor the consideration to be paid by him exceeds 25 per cent 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.
About Teuton
Teuton owns interests in more than thirty properties in the prolific “Golden Triangle” area of northwest British
Columbia and was one of the first companies to adopt what has since become known as the “prospect generator”
model. Seven of these properties are currently under option to third parties. Over $4 million in option cash
payments and shares in optionee companies has been generated from these properties since 2015, including
properties where optionees have already earned their interest.
Teuton was the original staker of the Treaty Creek property assembling the core land position in 1985. It
presently holds a 20% carried interest in Treaty Creek (carried until such time as a production decision is made)
as well as a 0.98% NSR in the claims covering the Goldstorm zone. A 0.49% NSR is owned in the peripheral
claims. Neither of the NSRs is subject to a buy-back.
Teuton also owns many other royalties in the Sulphurets Hydrothermal System with interests ranging up to
2.5%. None of these royalties are subject to a buyback. Interested parties can access information about Teuton
at the Company’s website, www.teuton.com.
Shareholders and other interested parties can access information about Teuton at the Company’s website,
www.teuton.com.
Respectfully:
“Dino Cremonese, P.Eng.”
President, Teuton Resources Corp.
For more information contact Investor Relations at 778-430-5680 or [email protected]
If you would like to be added to Teuton’s news distribution list, please send your email address to
This news release includes certain forward -looking statements concerning the future performance of our
business, its operations and its financial performance and condition, as well as ma nagement’s objectives,
strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”,
“will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and
results. Forward-looking statements are based on the current opinions and expectations of management. All
forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and
uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity
prices, competitive risks and the availability of financing, as described in more detail in our recent securities
filings available at www.sedar.com. Actual events or results may differ materially from t hose projected in the
forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp.
does have an ongoing obligation to disclose material information, as it becomes available.
The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.