The Proposed Transaction is subject to the approval of the TSX Venture Exchange
Tudor Gold has entered into a definitive agreement (the “Property Purchase Agreement“) with American Creek Resources Ltd. (“American Creek“) to purchase the remaining 40% legal and beneficial right, title and interest in and to certain properties and mineral rights known as the “Electrum Claims” in the Skeena Mining Division, located in British Columbia (the “Remaining Interest“) for: (i) the issuance of 1,400,000 common shares of the Company (the “Payment Shares”), subject to an 8-month contractual escrow period; and (ii) $250,000 in cash, each issuable or payable at the time of closing (the “Proposed Transaction“).
The Company currently holds a 60% interest in the Electrum Claims and the Company and American Creek are party to a joint venture agreement, dated May 10, 2016, which will be terminated with closing of the Proposed Transaction.
The Proposed Transaction is subject to the approval of the TSX Venture Exchange.
The property comprises 8 claims totaling 650 acres, of which six claims are subject to a 2% net smelter royalty (“NSR”) which can be purchased at any time for $1,000,000.
About Electrum Claims:
The “Golden Triangle” is one of the most important mineral districts of north-western British Columbia. The pertinent 650-hectare Electrum property is located between the past producing Silbak Premier mine (approx. 25 Km to the south) and Pretium Resource’s Valley of the Kings deposit (approx. 20 Km to the north). The Electrum property hosts the historic East Gold mine, known for the intermittent small-scale production of bonanza grade gold and silver between the years of 1939 and 1965. A total of 3,816 oz of gold and 2,442 oz of silver were produced in that time.
American Creek Resources undertook exploration between 2006 and 2007, with a total of 66 diamond drill holes comprising 15,369 meters. In 2016, the Joint-Venture partners, Tudor Gold and American Creek, completed nineteen drill holes totalling 1,406 meters.
Nearby infrastructure: The property is connected by road to an all-season, deep-water port at Stewart, BC (approx. 40 km away) as well as to a local gravel airstrip along Highway 37. Electrical power lines extend to within 18 km of the property and could be extended along the existing haul road to the site.
The Electrum property has exceptional potential for the outlining of a high-grade zone of epithermal gold-silver breccia-veins with geological similarities to the Premier and Brucejack projects.
Source: Company Press Release