Sanatana Resources Inc has announced that Teuton Resources Corp has agreed to purchase 4,000,000 units of the company for $600,000 and priced at $0.15 per unit.
Each unit will consist of one share and one-half of a share purchase warrant, each full warrant exercisable at $0.20 for two years.
The company said the funds will be used for upcoming drilling and exploration of Sanatana's Oweegee Dome project scheduled to start in June 2022.
In a statement, Peter Miles, CEO commented: "We are extremely pleased to welcome Teuton, headed by Dino Cremonese, as an important Sanatana shareholder. Dino has over 40 years of exploration experience in the Golden Triangle of BC and notably Teuton is the project generator for Tudor Gold (TSX-V:TUD)'s Treaty Creek project (located approximately 40 kms west of 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 strong endorsement of Sanatana's Oweegee Dome project," he added.
READ: Sanatana reports first copper results from Tarn Zone in its Oweegee Copper-Gold project in British Columbia
Cremonese, president and CEO of Teuton, commented: "This investment was made because of the merit of Sanatana's Oweegee Dome property located east of Highway 37 and north of Meziadin Lake in the Golden Triangle region of northwestern British Columbia. The Oweegee Dome property is similar to Teuton's Treaty Creek property in that both are very large and host extensive gossans indicating pervasive hydrothermal activity.
"When I first staked Treaty Creek in 1984, the general consensus was that it was a separate system from the Sulphurets region to the south, an area now controlled by Seabridge Gold's KSM property (host to some of the largest reserves of copper and gold in the world) and the Brucejack property (recently acquired by Newcrest for $3.5 billion from owner Pretium Resources). Although five different companies optioned Treaty Creek from 1990 to 2007, it was not until the sixth optionee, Tudor Gold, took on the property and hired Ken Konkin in 2019 that its promise was realized.
"A re-interpretation of geology and a re-orientation of drilling led to a maiden resource of 19.4 million gold equiv. ounces in early 2021. The main deposit, the Goldstorm, is still being explored for further expansion and three satellite zones hold promise for further resources to be developed. One might say that the Oweegee Dome property is at an earlier stage of its evolution, nevertheless, the new mineralized zones discovered in surface outcrop in 2021 do suggest potential for the discovery of a future porphyry copper-gold deposit. The property is scheduled for drilling at the beginning of the 2022 field season and Teuton's private placement investment insures it will have a substantial stake in this venture."
Closing of the private placement is subject to prescribed conditions, including, without limitations, approval of the TSX Venture Exchange. The securities issued will be subject to a four-month hold period which will expire four months and one day from the date of closing. Teuton may be an insider of Sanatana after closing.
In July 2021, Sanatana entered into an agreement with ArcWest Exploration Inc to option up to 80% of ArcWest's 31,077 hectare Oweegee Dome porphyry copper-gold project in British Columbia's Golden Triangle. The Oweegee Dome project is situated 45 kilometres (km) east of Seabridge Gold Corp's KSM-Iron Cap porphyry Cu-Au project.
The company can earn an initial 60% interest in the Oweegee Dome project by funding, over a four-year period, cumulative exploration expenditures of $6,600,000 and by making staged cash and share payments totaling $500,000 and 2,000,000 shares, respectively. Upon completion of the first option and receipt of the initial interest notice, Sanatana will have a 60-day period to elect to earn an additional 20% interest, for an aggregate 80% interest, or form a joint venture.
Sanatana Resources is a mineral exploration and development company focused on high-impact properties in Canada. With an award-winning technical team and experienced management and board of directors, Sanatana is based in Vancouver,
Contact the author at jon.hopkins@proactiveinvestors.com