Teuton Resources Corp. Announces Private Placement
August 5, 2014 (Source: Marketwired) — Teuton Resources Corp. (“Teuton”) (TSX VENTURE:TUO)(FRANKFURT:TFE)(OTCBB:TEUTF) after consultations with its shareholders will be cancelling the private placement announced on July 29, 2014. The combined flow-through and non flow-through share offering was considered too complex.
A new private placement will be entered into comprising an offering of 9,000,000 units (each a “Unit) at a price of $0.05 per Unit, for gross proceeds of up to $450,000 (the “Offering”). Each Unit will consist of one common share of Teuton and one common share-purchase warrant; each warrant will entitle the holder to purchase one additional common share of Teuton at a price of $0.07 for a period of twelve (12) months after the closing of the Offering, and thereafter at a price of $0.10 until twenty-four (24) months after the closing of the Offering.
A finder’s fee, up to the maximum allowable under TSX Venture policy, may be payable in regard to the Offering. Insiders of the Company may be taking part in the Offering. All securities issued by the Offering will be subject to a hold period of four months plus one day. The Offering is subject to regulatory approval.
Net Proceeds from the Offering will be used principally to fund exploration of the Company’s mineral properties in the Stewart area of northwestern British Columbia. In addition, net proceeds from the Offering may be used for general corporate purposes, including an interim payment on account of costs to the plaintiff in regard to the recent litigation on the Treaty Creek property. The main costs hearing for that litigation is scheduled for November 3, 2014, wherein the plaintiff will be seeking a substantially higher award of costs and which the Company will be opposing.
Teuton owns interests in more than thirty properties in the prolific “Golden Triangle” area of northwestern British Columbia. One of its core holdings comprises ground staked in the mid-1980s along extensions of favourable geology to the north and south of the KSM property (owned by Seabridge Gold) and the Brucejack-Snowfield property (owned by Pretium Resources). On July 30, 2014, the Globe and Mail reported that, “The British Columbia government has granted environmental approval for a proposed $5.3-billion mine [the KSM Project] in the province’s north, which would tap into one of the largest gold and copper deposits in the world and has already received support from local First Nations.” The Sulphurets Fault, which is related to all of the copper-gold deposits on the KSM property, passes south for at least 8km into Teuton’s High and Orion properties.
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Teuton’s High property also borders due south of Pretium’s Brucejack property, home to the Valley of the Kings deposit, now the largest high-grade gold deposit in the world. A one-hole drilling program undertaken on the High in 2012 resulted in an intersection running 222m of 0.88 g/t gold. This intersection compares well with the average intersections obtained in the first ten holes drilled by Pretium into their Bridge deposit, located less than 2km to the north. Much higher grade gold values were obtained in surface sampling on the High but have not yet been adequately drill tested.
The Company also owns interests in the Tennyson property on which Brigade Resources, a private Hunter Dickinson company, spent $4 million in 2012-13 drilling two porphyry copper-gold zones. Teuton recently re-acquired a 100% interest in the Del Norte property, in which more than 90 holes were drilled from 1990 to 2007 following up several gold-silver and copper-bearing structures. It also controls an extensive land package north of Imperial Metal’s Red Chris copper-gold mine.
Teuton was one of the first companies to adopt what has since become known as the “prospect generator” model. This involves acquiring ground by staking, grooming it, and then optioning it out to third parties. Instead of having one or two properties to explore, work which must be financed internally, prospect generators can have interests in multiple properties because the work is carried out and financed by others.
The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng. Mr. Cremonese, P.Eng., is the President of Teuton Resources Corp. and is not independent of the Company.
Dino Cremonese, P.Eng., President,
Teuton Resources Corp.
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This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.
The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>