Tudor Gold Corp. (TSXV: TUD) is proposing to spin-off of its six contiguous mineral properties located in the Golden Triangle Area in northwestern British Columbia by way of a plan of arrangement under the Business Corporations Act.
The company has also revealed it has entered into an arrangement agreement with Goldstorm Metals Corp., a wholly-owned subsidiary of the company. Pursuant to the Arrangement, among other things:
- Tudor Gold shareholders will receive approximately 0.253 of a common share of Goldstorm for every one common share of Tudor Gold held; and
- Goldstorm will acquire the company’s six contiguous Golden Triangle Area mineral properties, being the Mackie East, Mackie West, Fairweather, High North, Delta and Orion and Electrum properties in consideration for Goldstorm issuing 44,999,999 Goldstorm Shares to Tudor Gold.
The Agreement also contemplates the completion of an additional non-brokered private placement of Goldstorm Shares for gross proceeds of at least $3 million.
The board of directors of Tudor Gold has determined that the Arrangement is in the best interests of the company. Among other things, the separation of the Crown Property into a separate public company will position such assets to be valued on a standalone basis.
In addition, the transaction will allow Tudor Gold management to focus their efforts on the development of its flagship Treaty Creek property with Goldstorm’s management to focus on exploring and developing the Crown Property.
“We are pleased to announce the Arrangement, which we believe will help unlock and maximise value for our shareholders,” Walter Storm, President and CEO of Tudor Gold, stated.
“On completion, Goldstorm will be positioned well to advance our efforts in the Golden Triangle Area, with a strong balance sheet and experienced management team. We look forward to updating shareholders on this transaction as it progresses.”
The Company intends to apply for a listing of the Goldstorm Shares on the TSX Venture Exchange. Any such listing will be subject to Goldstorm fulfilling all of the requirements of the TSX-V.
It is currently expected that the directors of Goldstorm on completion of the Arrangement, will consist of Walter Storm, Sean Pownall, Ken Konkin, Helmut Finger and Ronald-Peter Stöferle, with Mr. Konkin acting as President and Chief Executive Officer and Scott Davis acting as Chief Financial Officer.
In addition, pursuant to the Arrangement, holders of Tudor Gold options will exchange such securities for new options of Tudor Gold.
For further information. Please visit: https://tudor-gold.com/
