VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 24, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Tudor Gold Corp. (the "Corporation") (TSX VENTURE:TUD) is pleased to announce it has entered into agreements for the right to acquire a 100% interest in three properties, located in the Golden Triangle area, in the Skeena Mining Division. The properties are commonly known as the Fairweather property, the Delta property, and the High North property. The Corporation has been granted the right to acquire the 100% interest in the properties from Tudor Holdings Ltd. (a non-arm's length party), pursuant to the terms of assignment and assumption agreements. The assignment and assumption agreements are related party transactions. The proposed acquisitions are subject to TSX Venture Exchange (the "Exchange") approval.
Fairweather Property
The Corporation has been assigned, subject to Exchange approval, the right to acquire a 100% interest in the property by paying Tudor Holdings Ltd. the sum of $37,662, which represents Tudor Holdings Ltd.'s costs paid to date in respect of the property. Additional option payments totaling $320,000 over a five year period, and the issuance of up to 700,000 shares in the capital of the Corporation over a five year period, with an initial issuance of 250,000 shares upon the Corporation receiving Exchange approval, are required to be assumed and paid by the Corporation to acquire a 100% interest in the property. The property is subject to a 2% NSR royalty.
The Fairweather property comprises 6 claim blocks located approximately 55km north of Stewart, British Columbia and is considered prospective for transitional epithermal gold-silver mineralization similar to those being developed 10 kilometers to the north at the Brucejack property. The initial target area is a quartz brecciated conglomerate zone discovered in 1987 that returned 4.04 grams gold per tonne over 7 meters in a trench. A subsequent small work program did not extend the mineralization due to deep overburden. Further trenching and shallow drilling have been recommended but not yet carried out.
Delta Property
The Corporation has been assigned, subject to Exchange approval, the right to acquire a 100% interest in the property by paying Tudor Holdings Ltd. the sum of $105,951, which represents Tudor Holdings Ltd.'s costs paid to date in respect of the property. Additional option payments totaling $900,000 over a four year period are required to be assumed and paid by the Corporation to acquire a 100% interest in the property. Claims comprising the property are subject to NSR royalties of 2 1/2% to 3%.
The Delta property adjoins the Fairweather property to the north. Since 1985 approximately $1.5 million in exploration has occurred on the Delta property including small drill programs in 2012 and 2013. In the western portion of the property, a 2012 drill hole believed to have intersected the downward projection of the Feld zone returned a 5.8 meter down hole interval grading 3.0 grams gold per tonne from 210.9 to 216.7 meters. Two other holes were drilled at steeper angles failed to hit any significant mineralization but both holes appear to have been stopped short before encountering the Feld zone.
The central portion of the Delta property hosts an area where gold and silver anomalous heavy metal stream sediment samples ranging from 1,255 to 6,500 parts per billion ("ppb") gold and from 20.0 to 141 parts per million ("ppm") silver were collected from five streams in 1986.
High North Property
The Corporation has been assigned, subject to Exchange approval, the right to acquire a 100% interest in the property by paying Tudor Holdings Ltd. the sum of $102,468, which represents Tudor Holdings Ltd.'s costs paid to date in respect of the property. Additional option payments totaling $900,000 over a four year period are required to be assumed and paid by the Corporation to acquire a 100% interest in the property. The property is subject to a 2 1/2% NSR royalty.
The High North property is located immediately south of Seabridge Gold's KSM property and is considered prospective for similar style copper-gold porphyry mineralization. A prominent thrust fault, the Sulphurets Fault, traverses the length of the KSM property and continues southward for another 5 kilometers onto the High North property. This fault is spatially related to all of the copper-gold deposits at KSM. The northern area of the High North property heading onto the KSM property is quite rugged, at high altitude and a large portion is covered by ice.
The foregoing technical disclosure and scientific information, including results of the previous exploration, has been reviewed, compiled and approved by Richard A. Graham, P. Geol., who is a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
The Corporation will pay no finders' fees in connection with the proposed acquisitions. The shares issued in connection with the Fairweather property will be subject to a statutory hold period of four months and a day from closing. The assignment and assumption agreements entered into by the Corporation and Tudor Holdings Ltd. constitute 'related party transactions' under MI 61-101. The Corporation is exempt from both the formal valuation and the minority shareholder approval requirements of MI 61-101 in connection with the issue of the consideration for the properties because neither the fair market value of the cash consideration and the shares to be issued for the Fairweather property do not exceed 25% of the Corporation's market capitalization as calculated in accordance with MI 61-101.
Walter Storm,
President and Chief Executive Officer
Cautionary statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
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.
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The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.