June 2, 2020 - TheNewswire - Vancouver, BC - Teuton Resources Corp. (“Teuton” or “the Company”) (TSXV:TUO) (OTC:TEUTF) (Frankfurt:TFE) announces that it intends to complete a non-brokered private placement consisting of the issuance of up to 3,000,000 units (“Units”) at a price of $0.80 per Unit for gross proceeds of up to $2,400,000 subject to the approval of the TSX Venture Exchange. Each Unit will consist of one common share (“Common Share”) and one-half a Common Share purchase warrant (“Warrant”). Each Warrant is exercisable into one Common Share at a price of $1.00 for a period of one year from closing.
Eric Sprott has agreed to subscribe for a minimum of 2,000,000 Units (Mr. Sprott also agreed to sign a voting agreement with Teuton promising to vote with management in the event of a hostile takeover bid, and to vote with management if it agrees to accept a takeover bid). Eric Sprott, through his numbered company 2176423 Ontario Ltd, is already a substantial shareholder of Teuton. Pursuant to an Early Warning Report filed June 1, 2020, Eric Sprott beneficially owns and controls 4,611,000 Shares and 2,500,000 Share purchase warrants representing approximately 10.6% on a non-diluted basis and 15.5% on a partially diluted basis assuming exercise of such warrants. After completion of his subscription and assuming other parties take down the remaining 1,000,000 shares of the private placement, Eric Sprott will beneficially own and control 6,611,000 shares and 3,500,000 share purchase warrants representing approximately 14.2% on a non-diluted basis and 19.9% on a partially diluted basis assuming exercise of all warrants.
There are no finder’s fees or other commissions associated with the transaction. Certain of the Company’s insiders may participate in the private placement. The proceeds of the financing will be used to advance the Company’s many properties in the Golden Triangle Region of northwestern British Columbia. A portion of the funds will be directed to general working capital.
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.
“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.
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