Eric Sprott to invest $9 million in Teuton Resources

Vancouver, BC: Teuton Resources Corp.  (“Teuton” or “the Company”) (“TUO”-TSXV) (“TFE”- Frankfurt) announces that it intends to complete a non-brokered private placement consisting of the issuance of 3,000,000 shares at a price of $3.00 per share for gross proceeds of $9,000,000. The private placement is subject to regulatory approval, including but not limited to approval of the TSX Venture Exchange, and all securities issued pursuant to the private placement will have a hold period of four months and one day. 
 
The private placement is with Eric Sprott’s numbered company, 2176423 Ontario Ltd., already a substantial shareholder of Teuton.  Pursuant to an Early Warning Report filed July 10, 2020, Eric Sprott beneficially owns and controls 6,611,000 shares and 3,500,000 share purchase warrants of the Company.  After completion of the private placements Eric Sprott will beneficially own and control 9,611,000 shares and 3,500,000 share purchase warrants of the Company, representing approximately 19.2% on a non-diluted basis and 24.5% on a partially diluted basis assuming exercise of all warrants.   Mr. Sprott has also agreed to sign a Support Agreement with the Company in regard to a merger, take-over bid, amalgamation, plan of arrangement, business combination or similar transaction which may arise over the next two years.
 
There are no finder’s fees or other commissions associated with the transaction.  The proceeds of the financing will be used to explore the Company’s many properties in the Golden Triangle region of northwestern British Columbia, to invest in acquiring new resource opportunities within the Golden Triangle, and for general working capital.
 
About Teuton
 
Teuton owns interests in more than thirty properties in the prolific “Golden Triangle” area of northwest British Columbia and was one of the first companies to adopt what has since become known as the “prospect generator” model.  Seven of these properties are currently under option to third parties.   Over $4 million in option cash payments and shares in optionee companies has been generated from these properties since 2015, including properties where optionees have already earned their interest.
 
Teuton was the original staker of the Treaty Creek property assembling the core land position in 1985.  It presently holds a 20% carried interest in Treaty Creek (carried until such time as a production decision is made) as well as a 0.98% NSR in the claims covering the Goldstorm zone.  A 0.49% NSR is owned in the peripheral claims.   Neither of the NSRs is subject to a buy-back. 
 
Teuton also owns many royalties in the Sulphurets Hydrothermal System with interests ranging up to 2.5%.  None of these royalties are subject to a buyback.  Interested parties can access information about Teuton at the Company’s website, www.teuton.com.        

(Visited 7 times, 1 visits today)
error: Content is protected !!
Copy link