TRU Mr. Joel Freudman reports
TRU PRECIOUS METALS ANNOUNCES PRIVATE PLACEMENT OF FLOW-THROUGH UNITS
Tru Precious Metals Corp. intends to undertake a non-brokered private placement for gross proceeds of up to $3.5-million, subject to TSX Venture Exchange approval. The offering shall consist of up to 12,962,963 flow-through units at a price of 27 cents per FT unit. Tru has been informed that Eric Sprott, or a related entity, intends to purchase approximately $2-million of the FT units immediately following closing of the offering.
Joel Freudman, co-founder and chief executive officer of Tru, commented, "We are excited to see strong institutional interest in financing Tru so quickly after our resumption of trading and look forward to advancing the offering to closing as expeditiously as possible."
Each FT unit will comprise one common share of Tru that qualifies as a flow-through share for the purposes of the Income Tax Act (Canada) and one non-flow-through common share purchase warrant. Each warrant shall be exercisable into one common share of Tru at a price of 35 cents per common share for a period of 36 months from the date of closing of the offering, currently anticipated to occur next week. The completion of the offering is subject to completion of necessary documentation and is conditional upon receipt of the approval of the exchange.
The net proceeds from the offering will be used by the company to finance exploration programs on the company's mineral properties in the Central Newfoundland gold belt and other Canadian exploration expenses that qualify as flow-through mining expenditures, as those terms are defined in the Income Tax Act (Canada), including (i) a comprehensive two-phase exploration program at the Golden Rose project; and (ii) a limited phase 1 drilling program at the Twilite gold project.
The FT shares and warrants, and any common shares of Tru issuable upon exercise of the warrants, will be subject to a hold period of four months and one day from the closing date of the offering. Finders' fees may be payable in connection with certain of the subscriptions to the offering. No finders' fees will be paid to non-arm's-length parties.
*** Sprott is going buy V.TRU @ 0.27 after PP is closed. It is the best bet to buy @ .28 for us and we wait patiently.