Tru Precious Metals (TRU) has completed its acquisition of the drill-ready Twilite Gold Project in central Newfoundland.
The property covers 1,625 hectares and is thought to be associated with a low sulphidation gold system that bears many of the same characteristics as Sokoman Minerals' Moosehead Gold Project roughly 30 kilometres to the northeast.
Previous drilling work by Sokoman at the Moosehead Project returned significant results, including 11.9 metres at 44.96 grams per tonne of gold.
Under the terms of the purchase agreement, which was announced on October 14, Tru Precious Metals has issued 1,435,000 common shares and C$100,000 in cash to GBC Grand Exploration in exchange for the Twilite Project.
GBC Grand Exploration will also retain a 1 per cent royalty on the project, half of which - or 0.5 per cent - may be purchased by Tru Precious Metals for $1 million. The Twilite Project is currently subject to a 2 per cent royalty owing to the prior owners, half of which - or 1 per cent - may also be purchased for $1 million.
While the project has previously been explored, it has not been thoroughly followed up. At the Discovery prospect, grab samples returned values up to 202 grams per tonne of gold, while a diamond drill hole at the Spring Pit prospect returned 5.8 metres at 5.1 grams per tonne of gold.
"Twilite is now the flagship asset in our Newfoundland Gold Exploration portfolio," said Joel Freudman, CEO of Tru Precious Metals.
"We continue to work diligently towards assembling a district-scale property package in the Central Newfoundland Gold Belt, for upside potential through exploration as well as appreciation on the back of nearby discoveries by New Found Gold and others in the region," he added.
The purchase of the Twilite Project represents the second asset in the company's growing portfolio, following the acquisition of the Gander West property in September.
Tru Precious Metals is currently up 3.45 per cent to $0.30 per share at 2:37pm EST.