Teuton Options 80% Interest in Harry Property to Optimum Ventures. Terms: Payment of $1.5 Million, 4 Million Shares and $9 Million Work Commitment Over Five Years; Teuton Also Retains 2% NSR.
Vancouver, Canada - TheNewswire - September 14, 2021 – Teuton Resources Corp. (“Teuton” or “the Company”) (TSXV:TUO) (OTC:TEUTF) (Frankfurt:TFE) announces that it has entered into an option agreement (the "Option Agreement") with Optimum Ventures Ltd. (“OPV”-TSXV) ("Optimum") pursuant to which Teuton has agreed to grant to Optimum the option to acquire an 80% interest in (the "Option") the Harry and Outland Silver Bar properties which are located in the Skeena Mining Division approximately 30 km northwest of Stewart, B.C. (collectively, the "Harry Property").
Subject to TSXV approval, and pursuant to the terms of the Option Agreement, the total aggregate consideration payable by Optimum to Teuton for an 80% interest in the Harry Property is an aggregate of up to $1,500,000 cash over five years from September 13, 2021 (the "Effective Date"); an aggregate of up to 4,000,000 common shares of Optimum (the "Common Shares") in installments over a five year period from the Effective Date; and incurring expenditures on the Property (or making a cash payment to the Teuton in lieu) of up to $9,000,000 in installments over five years from the Effective Date. Upon the exercise of the Option and Optimum acquiring an 80% interest to the Harry Property, the parties will enter into a joint venture agreement for the operation of the project and Optimum will grant to Teuton a 2% Net Smelter Royalty (no buyback). The Option Agreement is subject to customary closing conditions including receipt of all required regulatory and third party consents and approvals including the approval of the TSX Venture Exchange ("TSXV"). Any securities issued in connection with the Option Agreement will be subject to applicable statutory hold periods for a period of four months from the date of issuance.
In connection with entry into the Option Agreement, Optimum entered into a quitclaim agreement (the "Quitclaim Agreement") with Jayden Resources Inc. (“JDN”-TSXV)("Jayden") pursuant to which Jayden has agreed to terminate its option agreement with Teuton dated September 4, 2020 in consideration of a cash payment of $27,000 and the issuance of 750,000 common shares to Jayden. The Jayden Agreement is subject to customary closing conditions including receipt of all required regulatory and third party consents and approvals, including the approval of the TSXV.
The Harry Property is located north of Stewart, British Columbia, in the Skeena Mining Division. It consists of 3 contiguous claims that cover a gross area of approximately 1,333 hectares. As per the December 1, 2020 National Instrument 43-101 Technical Report on the Harry Property (available at: https://sedar.com/GetFile.do?lang=EN&docClass=24&issuerNo=00005272&issuerType=03&projectNo=03159714&docId=4867842), the majority of the Property including the Outlander claim lies along the NW portion of a geological corridor prospective for gold-silver mineralization that is up to 3 kilometers wide. It is at least 15 kilometers long extending from south of the Premier Mine, possibly in the US, north to the Scottie Gold Mine and beyond.
In 2020, a new zone of mineralization called the “Milestone” was discovered on the Harry property averaging 7.86 oz/ton gold (269.5 g/t) across a 2 metre width. The full width of this new zone has not been defined due to overburden cover.
The Qualified Person for this news release for the purposes of National Instrument 43-101 is Teuton’s President and CEO, Dino Cremonese, P. Eng., who as an officer of the Company is not independent of the Company. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
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. Teuton earned $3.9 million net income in 2020 and a further $2.4 million in the first quarter of 2021. Its income is derived from option payments.
Teuton was the original staker of the Treaty Creek property, host to the large Goldstorm deposit, 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). Interested parties can access information about Teuton at the Company’s website, www.teuton.com.
On behalf of the Board of Directors of Teuton Resources:
"Dino Cremonese, P.Eng."
Dino Cremonese, P. Eng.,
President and Chief Executive Officer
For further information, please visit the Company's website at www.teuton.com or contact:
Director Corporate Development and Communications
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements regarding Forward-Looking information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially.
All statements relating to future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.