(via Thenewswire.ca)
CALGARY, ALBERTA / TheNewswire / June 9, 2015 - Trio Gold Corp. ("Trio" or the "Company") (TSX VENTURE: TGK, US-Listed: TROOF) is pleased to announce that subject to the approval of the TSX venture exchange, Trio proposes a non-brokered private placement of up to 50 million shares at a price of one cent per share, which will include one half of a warrant per share. Two warrants will enable the holder to purchase one additional common share for a period of one year from the date of the closing of the private placement at a price of five cents per share and for the following twelve month period at a price of ten cents per share. The Corporation plans to retain one or more agents in connection with the Private Placement and to pay to such agents a sales commission or finder's fee of up to 10% of the gross proceeds raised under the Private Placement. All the securities issuable will be subject to a four-month hold period from the date of issuance.
This proposed offering will replace the previously announced non-brokered private placement dated May 15, 2015. The private placement is conducted pursuant to the TSX Venture Exchange Discretionary Waivers bulletin dated April 7, 2014.
The proceeds of the financing will be primarily used to maintain the Company's existing operations, activities and assets. Management fees, new business operations or related activities will not be funded from the proceeds of this offering. Part of the funding of existing operations will include the completion of an ongoing geophysical evaluation of a gravity survey that was conducted over the Company's Rodeo Creek property in Nevada. This gravity survey was performed by Barrick Gold Corp (Barrick) over an area of interest that included Trio's Rodeo Creek lands. Trio agreed to allow Barrick to conduct the survey over its lands in exchange for a copy of the data. The balance of the funds will be used to retire a portion of the Company's accrued financial obligations and to continue the implementation of the company's business activities as they relate to the development of its two principal properties. A more detailed break-down is provided below.
Use of Funds
The Company intends to utilize the funds to first pay off all overdue accounts which are listed below.
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Audit fees for years 2014/15
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$ 44,000.00
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Business tax and insurance
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8,000.00
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Mineral property maintenance (Due in August)
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20,000.00
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Accrued office rent, accounting, and supplies
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110,000.00
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Shareholder Annual Meeting
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25,000.00
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Offering costs
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35,000.00
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Legal
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15,000.00
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Listing fees and related expenses
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15,000.00
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Total due:
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$ 272,000.00
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The balance of the funds of $228,000.00 will be used to finance the go forward operating expenses of the Company over the next 12 months. The primary focus and related expenses of the Company will be to prepare data and due diligence packages on the Company's two principal properties. Those activities will include; the third party processing and analysis of the gravity survey conducted by Barrick and its associated reports. Further geological mapping and data assembly for presentation to interested joint venture parties. (Budgeted to be $35,000.) In association with this initiative the company plans to launch a broker specific public relations program to highlight some of the exciting new developments in and around our properties. By doing this the Company intends to expand its investor base and potentially draw in further Joint Venture interest from other mining companies. (Budgeted to be $85,000.00) The company also plans to establish a reserve of $20,000 to put aside to cover its 2016 property maintenance fees. The balance of $88,000.00 will be used for general corporate purposes such as future rent, accounting, legal and corporate reporting.
The Properties
The first of the Company's two properties is the McNeil property, which is located in the Timmins area of Ontario and covers an area of approximately 10,200 acres (4,127 hectares). The McNeil property contains a number of gold showings and old workings dating back to the early 1920's. Gold showings and past workings include a number of high-grade shafts, such as the Isadore Shaft, 8Ft Shaft and the Laporte Shaft along all of which contain numerous recorded gold showings. One such notable gold showing just north of the 8 foot shaft, the MicMac Showing, was examined in 2002 by L. Jensen working for the Ontario Geological Survey, who collected Gold samples of 17.6g/ton, 26.7g/ton and 3.2g/ton. (OGS Report File 5931). These are reported historical values from previous operators but are not NI43-101 compliant.
The Rodeo Creek property is the second property which is located in the Northern portion of the Carlin Gold Trend in Nevada. This property is adjacent to Barrick Gold Corp's recently permitted South Arturo Gold mine, slated for production later this year. The Storm deposit owned and mined by Barrick Gold Corp. is located approximately 1.5 km to the south east of the Trio lands. Past drilling conducted by Trio encountered various grades of gold ranging from minor shows up to 0.865 opt.
This press release has been reviewed and approved by Ms. Chartier MSc., MBA, P. Geol. , Trio's qualified person for NI43-101 reporting.
For further information on the contents of this news release or the activities of the Company, contact Mr. Harry Ruskowsky, President and CEO at (403) 262-9640.
Trio Gold Corp.
Suite 145-251 Midpark Blvd. SE
Calgary, Alberta T2X-1S3
Phone: (403) 262-9640
E-mail:press@triogold.com Website: www.triogold.com
CUISPa#89669C-108, Exemption #82-2127
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