- Tudor Gold (TSXV:TUD) has revealed a private placement of up to 6.65 million common shares, all of which will be acquired by billionaire Eric Sprott
- These shares, qualified as flow-through shares, will be issued at a price of C$1.40 each
- The proceeds will be used to incur eligible exploration expenses, as defined in Canada’s Income Tax Act
- Following the transaction, Eric will own approximately 19.9 per cent of the issued and outstanding shares of Tudor Gold
- Tudor Gold (TUD) is currently up 0.74 per cent and is trading at $1.37 per share
Tudor Gold (TSXV:TUD) has revealed a private placement of up to 6.65 million common shares, which will be acquired by billionaire Eric Sprott.
Under the terms of the non-brokered placement, the shares will be issued as flow-through shares – as defined in Canada’s Income Tax Act – at a price of C$1.40 each, for gross proceeds of $9.3 million.
The proceeds raised will be used to incur eligible exploration expenses that qualify as flow-through mining expenditures, relating to the company’s portfolio of assets in British Columbia’s prolific Golden Triangle.
Among these assets is the 17,913-hectare Treaty Creek project, in which Tudor Gold holds a 60 per cent interest. The property sits adjacent to Seabridge Gold’s KSM property to the south and Premium Resource’s Brucejack property to the southeast.
Tudor’s portfolio also includes a 100 per cent interest in the Electrum Project, as well as earn in options at several other potential projects.
Following completion of the transaction, Eric will hold roughly 19.9 per cent of the company. As an existing holder of 25.6 million common shares, or approximately 16.6 per cent of the company, the private placement is considered a related party transaction.
Pursuant to his holding, Eric has also entered a support agreement which secures his backing of any takeover bid or business combination recommended by Tudor’s management.
Eric’s investment is the latest in a long string of others that have taken place over the last few weeks. He famously made similar investments during the 2008 global financial crisis and claims to hold approximately 90 per cent of his assets in silver and gold.
Tudor Gold (TUD) is up 0.74 per cent and is trading at $1.37 per share at 11:49am EDT.