News
Tru signs deal for option to acquire Golden Rose
2021-01-07 14:24 ET - News Release
Mr. Joel Freudman reports
TRU PRECIOUS METALS SIGNS BINDING TERM SHEET WITH ALTIUS MINERALS SUBSIDIARY FOR OPTION TO PURCHASE GOLDEN ROSE PROJECT
Tru Precious Metals Corp. has entered into a binding term sheet with a subsidiary of Toronto Stock Exchange-listed Altius Minerals Corp. for the option to purchase Altius's Golden Rose project located in the southwestern portion of the Central Newfoundland gold belt.
TRU Co-Founder and CEO Joel Freudman commented: "We are thrilled to be partnering with Altius to explore and develop the Golden Rose Project. This partnership is consistent with our communicated strategy to build towards a district-scale presence in central Newfoundland."
The Golden Rose Project is a regional-scale land package covering 105 kilometres squared (km2) within the Valentine Lake structural corridor, and is easily accessible via provincial highway and forest access roads. It is located between Marathon Gold Corp.'s ("Marathon") Valentine Gold Project to the northeast, where Marathon has reported 3.09 million ounces (Moz.) Measured and Indicated gold (Au) resources (comprised of 54.9 million tonnes (Mt) at 1.75 grams per tonne (g/t) Au) + 0.96 Moz. Inferred Au resources (16.8 Mt at 1.78 g/t Au),1 and Matador Mining's Cape Ray Gold Project to the southwest, which also has a known gold deposit.2 Figure 1: Golden Rose Project Regional LocationTo view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/5993/71589_024f499f84778826_001full.jpg
Mr. Freudman added, "On closing, this transaction will bring Altius into TRU's shareholder base as a strategic investor with an expected 19.9% stake. This is a pivotal development for us, as this fuels our rapid progress to date and further enhances TRU's business prospects going forward. Coupled with our 100%-owned Twilite Gold Project, TRU will now have two highly-prospective gold exploration properties along a fault zone that hosts multiple known major deposits."
Geological Description
The Valentine Lake structural corridor transects the full length of the Golden Rose Project, hosting over 45 km of prospective strike-length for Au mineralization.
In terms of top prospects, the South Woods Lake zone has yielded historical grab samples up to 65 g/t Au, and drill intercepts including 1.37 g/t Au over 26.31 metres (m) and 2.14 g/t Au over 16.11 m. To date, the zone has been outlined to greater than 550 m on surface and remains open along strike and at depth. Gold mineralization at the South Woods Lake zone is hosted by variably textured, sheared and brecciated, intrusive rock, and within of a network of thin, anastomosing, quartz-pyrite plus or minusarsenopyrite veins and fractures. Preliminary work suggests the gold occurs as fine, free gold.
Altius has also identified no fewer than five other historic and newly discovered prospects at the Golden Rose Project, both north and south of South Woods Lake, including several at which historic high-grade unsourced quartz-rich float have been found. Float samples testing up to 196.7 g/t Au were found at the Falls Zone, which has exposed mineralization with anomalous gold grades, as well as samples at Glimmer Pond of up to 213.8 g/t Au, which has strongly altered volcanic or sedimentary rock on the southeast side of the pond with anomalous gold grades.Figure 2: Golden Rose Project Historical Drilling at South Woods Lake ZoneTo view an enhanced version of Figure 2, please visit:https://orders.newsfilecorp.com/files/5993/71589_024f499f84778826_002full.jpg
The technical information herein, including assays, relating to the Golden Rose Project is historical in nature and has not been independently verified by TRU. Note that rock grab and float samples and drill hole intervals are selective by nature, and values reported may not represent the true grade or style of mineralization across the Golden Rose Project.
Terms of the Option Agreement
In order to acquire a 100% interest in the Golden Rose Project, the Company must issue such number of common shares in the capital of the Company ("TRU Shares") as set forth below, and fund a total of $3,000,000 in exploration expenditures:
Share Issuance Exploration Funding Commitment 7,115,000 TRU Shares, at a deemed price of $0.25 per Share, upon receipt of approval of the definitive agreement to be entered into in respect of the Option (the "Option Agreement") from the TSX Venture Exchange (the "Exchange") Nil 800,000 TRU Shares on or before the date that is six (6) months $500,000 by the first anniversary from the date of the Option Agreement of the Option Agreement 800,000 TRU Shares on or before the date that is eighteen (18) $1,000,000 by the second anniversary months from the date of the Option Agreement of the Option Agreement 1,400,000 TRU Shares on or before the date that is twenty-four $1,500,000 by the third anniversary (24) months from the date of the Option Agreement of the Option Agreement
Upon exercise of the Option, Altius will retain a 2.0% net smelter returns royalty from any future mineral production at the Golden Rose Project, subject to a proportionate reduction for any underlying royalty obligations held by third parties.
The transaction remains subject to regulatory approval by the Exchange, and to other conditions precedent including the preparation of a National Instrument 43-101 technical report in respect of the Golden Rose Project. Trading in the TRU Shares will remain halted pending further filings with the Exchange.
The parties are working on the preparation of the Option Agreement. In addition, TRU will start evaluating various equity financing options to fund its anticipated initial exploration commitment at the Golden Rose Project, along with the first phase of the Company's intended drill program at the Twilite Gold Project.
Qualified Person
Barry Greene, P.Geo. is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the contents and technical disclosures in this press release. Mr. Greene is a director and officer of the Company and owns securities of the Company.
About TRU Precious Metals Corp.
TRU seeks unique value-creation opportunities, and has assembled a portfolio of gold exploration properties in the Central Newfoundland Gold Belt. The Company's common shares trade on the TSX Venture Exchange under the symbol "TRU" and on the OTCQB Venture Market under the symbol "TRUIF".
TRU is a portfolio company of Resurgent Capital Corp. ("Resurgent"), a merchant bank providing venture capital markets advisory services and proprietary financing. Resurgent works with promising public and pre-public micro-capitalization Canadian companies. For more information on Resurgent and its portfolio companies, please visit Resurgent's LinkedIn profile at https://ca.linkedin.com/company/resurgent-capital-corp.