- TRU Precious Metals (TRU) has closed an option agreement to purchase the Golden Rose Project from a subsidiary of Altius Minerals (ALS)
- In order to acquire the project, TRU must fund C$3 million in exploration expenditures and issue 3 million shares by February 23, 2023
- The company must also pay Shawn Rose $60,000 in annual instalments by November 30, 2022
- Altius and Rose will receive up to 2 per cent NSR royalties
- TRU Precious Metals holds a portfolio of five gold exploration properties in the highly-prospective Central Newfoundland Gold Belt
- Altius Minerals (ALS) closed the day down 9.5 per cent trading at $17.23 per share
- TRU Precious Metals (TRU) closed the day trading flat at $0.29 per share
TRU Precious Metals (TRU) has closed an option agreement to purchase the Golden Rose Project from a subsidiary of Altius Minerals (ALS).
The project is a regional-scale land package covering 105 km2 within the Valentine Lake structural corridor.
In terms of top prospects, the South Woods Lake zone has yielded historical grab samples up to 65 g/t gold and drill intercepts including 1.37 g/t gold over 26.31 m and 2.14 g/t gold over 16.11 m.
Altius has also identified no fewer than five other historic and newly discovered prospects at the Golden Rose Project. Float samples at the Falls Zone tested up to 196.7 g/t gold, while samples from Glimmer Pond tested up to 213.8 g/t gold.
Pursuant to the option agreement, Altius has granted TRU the exclusive right and option to acquire its 100 per cent interest in a package of mineral claims located in the Southwestern portion of the Central Newfoundland Gold Belt. The agreement is subject to Altius retaining a maximum 2 per cent net smelter return royalty.
Altius has also transferred an existing option agreement under which Shawn Rose has granted the exclusive right and option to acquire his 100 per cent interest in certain surrounding mineral claims known as the Rose Gold claims.
Collectively, the Altius claims and the Rose Gold claims are known as the Golden Rose Project.
In order to acquire the project, TRU must fund C$3 million in exploration expenditures and issue a number of shares as set forth below:
Date | TRU Share Issuance | Exploration Funding Commitment |
Completed on May 11, 2021 | 7,140,000 TRU shares at $0.25 per share | Nil |
Within one month from May 11, 2021 | 800,000 TRU shares at $0.25 per share | Nil |
By February 23, 2022 | 800,000 TRU shares at $0.25 per share | $500,000 |
By February 23, 2023 | 1,400,000 TRU shares at $0.25 per share | An additional $1,000,000 |
By February 23, 2024 | Nil | An additional $1,500,000 |
In addition, TRU must pay Rose $22,500 in cash or TRU shares on November 30, 2021, and $37,500 in cash or TRU shares on November 30, 2022.
TRU shall grant Rose a 2 per cent NSR on any future mineral production at the Rose Gold claims.
TRU will also have to pay Rose a $250,000 cash bonus if TRU defines at least 1,000,000 ounces of gold on the Rose Gold claims.
Joel Freudman, TRU’s co-founder and CEO, commented,
“We are delighted to welcome Altius as a strategic investor to TRU and our largest shareholder. Having also raised $3.5 million to fund work on the Golden Rose Project and our other projects, as well as a variety of public company initiatives, we are excited about the evolution of TRU to an exploration and mining company.”
TRU Precious Metals holds a portfolio of five gold exploration properties in the highly-prospective Central Newfoundland Gold Belt.
Altius Minerals (ALS) closed the day down 9.5 per cent trading at $17.23 per share.
TRU Precious Metals (TRU) closed the day trading flat at $0.29 per share.