Following due strong investor demand Tudor Gold Corp. (TSXV:TUD) has agreed to increase the size of its previously announced best efforts, brokered private placement offering to up to $8 million in gross proceeds and that it has amended the terms of the Offering.
The Offering is led by Research Capital Corporation, as lead agent and sole bookrunner, on behalf of a syndicate of agents, including Canaccord Genuity Corp. and Roth Canada Inc.
The net proceeds from the sale of Conventional Units will be used for the dompany’s ongoing exploration drilling programme, working capital requirements and other general corporate purposes. The entire gross proceeds from the issue and sale of the FT Units and Charity FT Units will be used for Canadian Exploration Expenses as defined in the definition of “Canadian exploration expense” and “flow through mining expenditures”.
The company is seeking to spin out its interest in its subsidiary Goldstorm Metals Corp. (which holds six contiguous Golden Triangle Area mineral properties, being the Mackie East, Mackie West, Fairweather, High North, Delta and Orion and Electrum properties) to the current shareholders of the company through a plan of arrangement.
In accordance with the terms of the arrangement agreement between the company and Goldstorm for the Spin-Out Arrangement, the Offered Securities will not entitle the holders or transferees of the Offered Securities to: (i) vote on the Spin-Out Arrangement, or (ii) receive common shares of Goldstorm in connection with the Spin-Out Arrangement.
The Company has entered into an amended and restated arrangement agreement dated August 29, 2022 with Goldstorm, in connection with the proposed Spin-Out Arrangement.
Tudor Gold believes that the proposed Spin-Out Arrangement and the Amended Arrangement Agreement are in the best interests of the Company and its stakeholders. The Amended Arrangement Agreement does not impact the consideration being provided under the Arrangement to holders of the company’s current outstanding securities and the previously disclosed exchange ratio, whereby each Shareholder will receive approximately 0.251 of a Goldstorm Share for each existing Common Share held, remains unchanged. Tudor Gold and its board of directors encourage all Shareholders to vote in favor of implementing the proposed Spin-Out Arrangement at the Company’s upcoming annual general and special meeting of Shareholders to be held on September 7, 2022.
For further information please visit: https://tudor-gold.com/
