(TheNewswire)
Vancouver, Canada - TheNewswire - March 1, 2022 - Teuton Resources Corp. (“Teuton” or“the Company”) ( TSXV: TUO) (OTC:TEUTF) ( Frankfurt: TFE) has entered into a private placement with Sanatana ResourcesInc. (“Sanatana”), subscribing for 4,000,000 non-flow-throughcommon units at a price of $0.15 per unit. Each unit consists of onenon-flow-through common share and one-half a warrant good for twoyears with each warrant entitling Teuton to acquire anothernon-flow-through common share at $0.20 per share. Total investment is$600,000. Net proceeds of the privateplacement will be used to advance exploration on Sanatana’s OweegeeDome property as well as for general working capital purposes. Thesecurities issued pursuant to the private placement are subject to astatutory four-month hold period and the private placement itself issubject to approval of the TSX Venture Exchange.
Dino Cremonese ,President and CEO of Teuton commented: “This investment was madebecause of the merit of Sanatana’s Oweegee Dome property locatedeast of Highway 37 and north of Meziadin Lake in the Golden Triangleregion of northwestern British Columbia. The Oweegee Dome property issimilar to Teuton’s Treaty Creek property in that both are verylarge and host extensive gossans indicating pervasive hydrothermalactivity. When I first staked Treaty Creek in 1984, the generalconsensus was that it was a separate system from the Sulphurets regionto the south, an area now controlled by Seabridge Gold’s KSMproperty (host to some of the largest reserves of copper and gold inthe world) and the Brucejack property (recently acquired by Newcrestfor $3.5 billion from owner Pretium Resources). Although fivedifferent companies optioned Treaty Creek from 1990 to 2007, it wasnot until the sixth optionee, Tudor Gold, took on the property andhired Ken Konkin in 2019 that its promise was realized. Are-interpretation of geology and a re-orientation of drilling led to amaiden resource of 19.4 million gold equiv. ounces in early2021*. The main deposit, the Goldstorm, is still being explored forfurther expansion and three satellite zones hold promise for furtherresources to be developed. One might say that the Oweegee Domeproperty is at an earlier stage of its evolution, nevertheless, thenew mineralized zones discovered in surface outcrop in 2021 do suggestpotential for the discovery of a future porphyry copper-gold deposit.The property is scheduled for drilling at the beginning of the 2022field season and Teuton’s private placement investment ensures itwill have a substantial stake in this venture.”
*815.7 million tonnes grading 0.74 g/t gold equiv. at a0.30 g/t gold equiv. cut-off. For detailed results refer to the Teutonnews release dated March 9, 2021, available on SEDAR.
Peter Miles CEO, of Sanatana, stated, “We are extremely pleased to welcomeTeuton, headed by Dino Cremonese, as an important Sanatanashareholder. Dino has over 40 years of exploration experience in theGolden Triangle of BC and notably Teuton is the project generator forTudor Gold’s Treaty Creek project (located approximately 40 kms westof Oweegee) with a combined market capitalization in excess of$560,000,000. We are confident that Dino’s demonstrated knowledge,leadership and experience in vetting Golden Triangle projects,combined with Teuton’s investment in Sanatana, provide a strongendorsement of Sanatana’s Oweegee Dome project.”
The Oweegee Dome property is over 31,000 hectares insize. Like Teuton’s Treaty Creek property, it was first exploredby Cominco over 80 years ago. It was acquired from MillrockResources by ArcWest Exploration Inc. (“ArcWest”) in 2018. ArcWest subsequently optioned the property to Sanatana Resources inJuly of 2021. Sanatana can earn an initial 60% interest in theOweegee Dome project by funding, over a four-year period, cumulativeexploration expenditures of $6,600,000 and by making staged cash andshare payments totaling $500,000 and 2,000,000 shares, respectively.Upon completion of the first option and receipt of the initialinterest notice from Sanatana, Sanatana will have a 60-day period to elect to earn an additional 20%interest by completing a feasibility study before the end of 2027, foran aggregate 80% interest, or form a joint venture.
The Sanatana private placement by Teuton was approvedby the independent directors of Teuton. Dino Cremonese disclosed tothe board that he had had a conflict and abstained from voting. Theconflict arose because Mr. Cremonese was appointed to the advisoryboard of ArcWest in early 2021 and was granted incentive stock optionsin ArcWest; earlier Mr. Cremonese had also purchased shares inArcwest, indirectly through a controlled private company.
Purchase of District Lot 6991 (570acres), Granduc Mining Road
Teuton recently completed the fee simple purchase for$500,000 of District Lot 6991 located just east of the formerlyproducing Scottie Gold Mine 30 miles north of Stewart, BC, along theGranduc Mining Road.
The ground has a large flat section lying just abovethe mining road which will serve as a staging area for exploration ofthe Company’s many properties located to the west (such as the EskayRift, Big Gold, Pearson, Four Js, Powder, Mach, Tennyson, Leduc Silverand Catspaw properties). It could also serve as a potential buildingsite for a mill, in the event a viable resource is discovered on anyof Teuton’s properties in the area. The old Granduc mineconcentrator is situated a few hundred metres to the west as are theold workings of the Scottie Gold Mine, currently being re-evaluated byScottie Resources. Teuton’s Harry property, optioned to OptimumVentures in 2021, is located 5km to the south.
Spin-Out TransactionContemplated
Since the maiden resource on the Treaty Creek propertywas published in March of 2021, both of Teuton’s joint venturepartners in the project have completed or are near completion ofspin-out transactions of their non-Treaty Creek assets. Teuton iscurrently investigating a spin-out of its own, which would involvemost of its non-Treaty Creek assets consisting of 30+ mineralproperties and royalty interests.
Teuton recently engaged Kim Maguire, corporatetransaction tax specialist at major Canadian law firm Bennett Jones.The Company has also retained Sandra Raath of Pearlman Lindholm, whohas specific expertise in structuring spin-out transactions.
The Company is in the process of receiving advice as tothe various tax, regulatory, business and other legal considerationsof a spin out transaction. Once this process is complete, it will makea decision on whether to proceed. Another announcement will be madeat that time.
The Qualified Person for this news release for thepurposes of National Instrument 43-101 is D. Cremonese, P. Eng. As Mr.Cremonese is the President and CEO of Teuton, he is not independent ofthe Company.
About Teuton
Teuton owns interests in more than thirty properties inthe prolific Golden Triangle area of northwest British Columbia andwas one of the first companies to adopt what has since become known asthe “prospect generator” model. Teuton earned $3.9 million netincome in 2020 and a further $2.4 million in the first quarter of2021. Its income is derived from option payments.
Teuton was the original staker of the Treaty Creekproperty, host to the large Goldstorm deposit, assembling the coreland position in 1985. It presently holds a 20% carried interest inTreaty Creek (carried until such time as aproduction decision is made) and an 0.98% NSR in the core portion ofthe property hosting the Goldstorm deposit. Interested parties canaccess information about Teuton at the Company’s website, www.teuton.com .
Respectfully submitted,
"Dino Cremonese, P.Eng."
Dino Cremonese, P. Eng.,
President and Chief ExecutiveOfficer
For further information, please visit the Company'swebsite at www.teuton.com or contact:
Barry Holmes
Director Corporate Development andCommunications
Tel. 778-430-5680
Email: barry@teuton.com
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
CautionaryStatements regarding Forward-Looking information
Certain statementscontained in this press release constitute forward-lookinginformation. These statements relate to future events or futureperformance. The use of any of the words "could","intend", "expect", "believe","will", "projected", "estimated" andsimilar expressions and statements relating to matters that are nothistorical facts are intended to identify forward-looking informationand are based on the Company's current belief or assumptions as to theoutcome and timing of such future events. Actual future results maydiffer materially.
All statementsrelating to future plans, objectives or expectations of the Companyare forward-looking statements that involve various risks anduncertainties. There can be no assurance that such statements willprove to be accurate and actual results and future events could differmaterially from those anticipated in such statements. Importantfactors that could cause actual results to differ materially from theCompany's plans or expectations include risks relating to the actualresults of current exploration activities, fluctuating gold prices,possibility of equipment breakdowns and delays, exploration costoverruns, availability of capital and financing, general economic,market or business conditions, regulatory changes, timeliness ofgovernment or regulatory approvals and other risks detailed herein andfrom time to time in the filings made by the Company with securitiesregulators. The Company expressly disclaims any intention orobligation to update or revise any forward-looking statements whetheras a result of new information, future events or otherwise except asotherwise required by applicable securities legislation.
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