Tennyson Gold-Copper Property Optioned to Hunter Dickinson in $7.5 Million Deal
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) -
Teuton Resources Corp. ("Teuton") (TSX VENTURE:TUO) (FRANKFURT:TFE) (OTCBB:TEUTF) is pleased to report that it has optioned its Tennyson gold-copper property to a private company ("NewCo") in the Hunter Dickinson Inc. ("HDI") group on terms as set out below. The property (see map) is located north of Stewart in the Eskay Creek-Sulphurets-Premier region of northwestern British Columbia (the "Golden Triangle").
Subject to HDI listing NewCo on the TSX-V and funding NewCo with $7.5 million, Teuton will vend 100% of the Tennyson project into NewCo, in exchange for shares equating to $7 million and a cash payment of $500,000. Teuton will, for so long as it holds more than a 30% interest in Newco, be entitled to appoint two directors to the board of Newco and one director if its shareholding is less than 30% but more than 10%. Teuton's shareholding in Newco will be locked up for a period of three years. Post the three year lock up period, Teuton will be able to sell or flow the Newco shares through to its shareholders.
In the event that HDI funds NewCo with less than $7.5 million, Teuton and NewCo will form a joint venture where NewCo will earn an initial 50% interest by incurring C$6 million in exploration expenditures and making $300,000 in staged payments over a three year period from the date of receipt of the Notice of Work.
Upon NewCo having fulfilled its expenditure commitments, NewCo will acquire Teuton's 50% interest by issuing such number of shares to Teuton that reflects a 50% project interest based on NewCo's market capitalisation and attributable project value.
Robert Dickinson, chairman of Hunter Dickinson Inc., said: "We are excited having acquired a promising project located in a highly prospective mineralized belt and more specifically along strike to the south of Seabridge Gold's KSM properties (measured and indicated resources of 49 million ounces gold, 12.7 billion pounds copper) and Pretium Resources' Brucejack (measured and indicated resources of 5 million ounces gold, 31 million ounces silver) and Snowfield (measured and indicated resources of 26 million ounces gold, 76 million ounces silver and 3 billion pounds copper) properties(i).
D. Cremonese, P.Eng., president of Teuton Resources said: "We are delighted to have optioned the Tennyson property to a company such as Hunter Dickinson, which is famous for development of several gold-copper porphyry deposits in British Columbia and elsewhere."
The option is subject to completion of due diligence by HDI and also regulatory approval.
The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng.
Respectfully:
Dino Cremonese, P.Eng., President
Teuton Resources Corp. |
