TUDOR GOLD Corp. (TSXV: TUD) (FSE: TUC) (the “Company” or “TUDOR GOLD”) is pleased to announce that it has closed a non-brokered private placement under which it has raised gross proceeds of $1,000,000.
The private placement was comprised of 2,857,142 units of the Company (the “Units”) at a price of $0.35 per Unit, with each Unit comprised of one common share and one transferable common share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $0.55 for a period of two years. The proceeds from the sale of the Units will be used to advance exploration of the Company’s Treaty Creek properties in the Golden Triangle of northwestern B.C., for general corporate and working capital purposes and to repay existing liabilities. All securities issued pursuant to the private placement are subject to a four month hold period under applicable Canadian securities laws. Tudor Holdings Ltd., which is controlled by Walter Storm, Chief Executive Officer, President and a director of the Company, purchased 473,428 Units under the financing. The issuance of Units to Tudor Holdings Ltd. is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is exempted from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the value of the Units issued to Tudor Holdings Ltd. does not exceed 25% of the fair market value of the Company’s market capitalization. Furthermore, a material change report respecting the private placement was not filed more than 21 days prior to the closing of the private placement due to closing occurring less than 21 days after the announcement of the private placement. The Company considers this reasonable in the circumstances due to the relatively small size of the value of the related party transaction.
Contact Information
Aris Morfopoulos
Financial Relations
Phone:604-721-2650
Email:[email protected]
Cathy Hume
CHF Capital Markets
Phone:416-868-1079 Ex 231
Email:[email protected]