Mr. Walter Storm reports
TUDOR GOLD CORP. ANNOUNCES IT HAS CLOSED ITS PROPERTY ACQUISITIONS AND
FINANCINGS ANNOUNCED MAY 11, 2016
Tudor Gold Corp. has received TSX Venture Exchange approval and closed the acquisition of a 60-per-cent interest in each of the Treaty Creek and Electrum properties and a 100-per-cent interest in the Eskay North property, on the terms as set out in the company's press release dated May 11, 2016. All the properties are located in the Golden Triangle area, in the Skeena mining division in British Columbia. An NI 43-101 technical report on the Treaty Creek property has been filed and is available on SEDAR.
In addition to cash consideration and work commitments, the company issued an aggregate of two million shares in its capital for the acquisition of the 60-per-cent interest in each of the Treaty Creek and Electrum properties. The shares are subject to regulatory hold periods expiring four months and one day after the issue of the shares, being Oct. 15, 2016, and a contractual hold period expiring on May 10, 2017. A total of 980,000 shares were issued as a finder's fee, which are subject to a regulatory hold period expiring on Oct. 15, 2016.
The company also issued 250,000 shares in its capital for the 100-per-cent interest in the Eskay North property, which are subject to a regulatory hold period expiring on Oct. 15, 2016.
The company has closed the private placement detailed in its May 11, 2016, press release, to raise proceeds of $1.3-million. All shares comprising part of the units and any shares issued on the exercise of the warrants are subject to a regulatory hold period expiring on Oct. 15, 2016.
The $650,000 credit facility has also been implemented.
The company is now looking forward to exploring and advancing its properties during the 2016 field season.
On June 14, 2016, Tudor Holdings Ltd. acquired ownership of 11 million units of the company at a purchase price of 10 cents per unit, pursuant to the terms of a private placement agreement. Each unit comprises one common share and one transferable share purchase warrant, each warrant entitling the holder thereof to purchase one additional common share of the company, exercisable up to June 14, 2018, at a purchase price of 10 cents each.
The warrants are not exercisable until the company's disinterested shareholders approve their issuance at a general meeting of the company's shareholders.
After giving effect to the transaction, Tudor Holdings beneficially owns a total of 41.25 million common shares and 11 million warrants of the company. Zoe Storm, the spouse of Walter Storm, who controls Tudor Holdings, beneficially owns two million common shares of the company. Ms. Storm is an associate of Mr. Storm, and pursuant to the provisions of Multilateral Instrument 62-104, is deemed to be acting jointly or in concert with Tudor Holdings. In addition, Mr. Storm, a principal of Tudor Holdings, was granted stock options to purchase an aggregate of one million common shares of the company with an exercise price of 10 cents per share that expire on April 19, 2026. Collectively, these common shares, warrants and stock options represent 75.55 per cent of the issued and outstanding common shares of the company on a partially diluted basis, assuming the exercise of the warrants and the stock options held by Mr. Storm.
Tudor Holdings acquired the common shares for investment purposes, and intends to evaluate its investment in the company and to increase or decrease its beneficial shareholdings from time to time, as it may determine appropriate for investment purposes.
An early warning report respecting the transaction will be electronically filed with the securities commissions in British Columbia, Alberta and Ontario, and will be available for viewing on SEDAR. A copy of the report can be obtained by contacting Aris Morfopoulos, chief financial officer and corporate secretary of Tudor Gold at 604-721-2650.
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