RE:RE:june 30 2018 The Fairwhether, Delta, and High North properties were optioned to "a private company" by Teuton and subsequently the options were assigned from Tudor Holdings (owney by Walter Storm) to Tudor Gold. The Orion property was optioned directly from Teuton to Tudor Gold. All four are covered by the updated option agreements. It appears to me that all of the future payments will be made with Tudor stock (at an assigned value of $.30) instead of cash.
At the same time, Tudor appears to be doing a great deal of balance sheet cleanup by writing down the carried value of several exploration properties to nil and eliminating future cash requirements by renegotiating its option agreements, along with writing down the value of its American Creek stock through a permanent impairment.
Tudor also recently made the unusual move of estimating a future resource (1.8 - 1.9 million oz Au) instead of waiting for a formal, compliant report, which might have occurred after the remaining exploration results come in for Copper Belle, and might have been larger given the additional expansion of Copper Belle.
Teuton appears satisfied with getting Tudor stock instead of cash from the options. Together with the previous stock from Tudor already received, Teuton will have at least 2.5 million Tudor shares (possibly more) when all are delivered.
Of course there are a large number of possible explanations for these moves. For example, auditor reviews could result in asset write-downs, or companies may classify some assets as "non-core."
But companies sometimes clean up their balance sheets and provide early resource estimates to make them more attractive to potential buyers - by making it easier to value the company during due diligence. For example, Tudor's moves would reduce the potential that a buyer would have to take write-downs shortly after an asset purchase, or take on cash requirements after the purchase. The write-downs could also increase the value of tax loss carryforwards if the buyer is a profitable company, and reduce the carried value of assets on the balance sheet to avoid a future perception that the buyer "overpaid." A resource estimate that turns out to be conservative or accurate would also tend to make a buyer look good while providing a fair return to their shareholders.
It would be very speculative to say that Tudor is being "shopped around" at this point in time, and I'm certainly not making that claim. Just saying that a number of interesting moves have been made this year. I still consider Tudor to be somewhat undervalued and Teuton to be very much undervalued. I had some orders execute last week at 9 cents (US$) and at that level I'm adding more if I can get it.
Do you own due diligence on these small exploration companies. I'm not a finance whizzer or geology expert by any means. Best of luck. Doug