TGX True North Gems Inc

True North Gems Inc. (TSX VENTURE:TGX) ("True North" or the "Company") is
extremely pleased to announce that the Government of Greenland has awarded the
Company an exclusive 30-year exploitation (mining) licence (the "Exploitation
Licence") for the Aappaluttoq Ruby Deposit, SW Greenland. 


"Today marks the culmination of our exploration, delineation and major
permitting activity. Since 2004 we have worked hard to plan a sustainable mining
operation that showcases the economic opportunities for our shareholders and the
people of Greenland," said Nicholas Houghton, President and Chief Executive
Officer. "This also heralds the beginning of our transformation from an
exploration company to a producer. It will enable us to showcase and deliver a
new supply of rubies and pink sapphires to the worldwide gemstone industry. I
would like to take this opportunity to publically thank all who have worked with
us and helped to achieve this major milestone."


The Aappaluttoq Ruby Deposit will be an open pit development, and over its
initial 9-year mine life it will directly create up to 80 new jobs in Greenland;
these will range from mining operations at the Aappaluttoq site to gemstone
grading in the Nuuk Processing Facility. The project will also act as a stimulus
for other investment in both secondary and supporting industries.


History:

Significant geological exploration and engineering has taken place over the last
decade. Throughout this process, the Company has endeavored to engage with the
local communities and utilize local support companies. The approximate US$23
million investment by LNS-Greenland ("LNS-G") announced on August 13, 2013 forms
a strategic partnership that significantly reduces the Company's financial
requirements in exchange for 20% of the project. Final technical work was
subsequently completed, and the Company entered the formal Exploitation
Permitting process in mid-2011, successfully completing public hearings in the
fall of 2013.


Continued Development:

The granting of the Exploitation Licence is the catalyst for future development;
as previously announced, the Company has been engaged in initial Impact Benefit
Agreement (IBA) negotiations and continues to finalise the mine environmental
monitoring and subsequent closure plan. The advanced process engineering design
is also currently being finalised and will be completed in due course. 


Under the Exploitation Licence, which will become officially effective on March
10, 2014, True North has agreed to pay a gross revenue royalty (the "Gross
Royalty") to the Government of Greenland of 5.5% on all sales of rubies and pink
sapphires exploited from the Aappaluttoq Ruby Deposit. The Gross Royalty will be
payable in each calendar year when the total aggregate paid by True North in
corporate taxes, withholding taxes and "Surplus Royalty" are less than the
calculated Gross Royalty in that calendar year, such that the Government
receives a minimum amount. The Surplus Royalty is calculated at a rate of 15% on
earnings before financial items and tax on any profit in any calendar year to
the extent the annual profit exceeds the profit margin percentage of 40%. The
new fiscal agreement will have no adverse impact on the net present value of the
project. 


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 


This document contains "forward-looking information" and "forward-looking
statements" (together, "forward-looking statements") within the meaning of
applicable securities legislation, which are made as of the date of this
document or the document(s) referred to herein. Statements that express
predictions, expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words or phrases
such as "expects", "anticipates", "plans", "projects", "estimates", "intends",
"strategy", "goals", "objectives" or variations thereof or stating that certain
actions, events or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be forward-looking
statements. Forward-looking statements include, without limitation, statements
with respect to: the amount of mineral reserves and mineral resources; the
amount of future production over any period; net present value and internal
rates of return of the proposed mining operation; capital costs; operating
costs; strip ratios and mining rates; and mine life.


The forward-looking statements are made based upon certain assumptions which, if
untrue, could cause the actual results, performances or achievements of the
Company to be materially different from future results, performances or
achievements expressed or implied by the forward-looking statements. These
assumptions include, without limitation: the price of gemstone products
produced; anticipated costs; the presence of and continuity of gemstones at
modeled grades and values; the capacities of various machinery and equipment;
the availability of personnel, machinery and equipment at estimated prices;
exchange rates; appropriate discount rates; tax rates applicable to the proposed
mining operation; financing structure and costs; anticipated mining losses and
dilution; gemstone recovery rates; reasonable contingency requirements; and
receipt of regulatory approvals on acceptable terms. By their very nature,
forward-looking statements involve inherent risks and uncertainties that could
cause actual results, performances or achievements to differ materially from
those in the forward-looking statements. These include, without limitation:
price volatility, discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries, mining operational and
development risks, regulatory restrictions (including environmental regulatory
restrictions and liability), activities by governmental authorities (including
changes in taxation), currency fluctuations, the speculative nature of gemstone
exploration, the global economic climate, dilution, share price volatility,
competition, loss of key employees; additional funding requirements and
defective title to mineral claims or property). This list is not exhaustive. See
also, for example, the risks disclosed in the Company's other disclosure
documents filed at www.sedar.com, including, without limitation, those disclosed
in the Company's management's discussion & analysis. The Company expressly
disclaims any intention or obligation to update or revise any forward-looking
statements, except as otherwise required by applicable securities legislation.


FOR FURTHER INFORMATION PLEASE CONTACT: 
True North Gems Inc.
Nicholas Houghton
President and CEO
604-687-8055


True North Gems Inc.
Joanna Hall
Corporate Coordinator
604-687-8055
info@truenorthgems.com
www.truenorthgems.com

True North Gems (TSXV:TGX)
Historical Stock Chart
From May 2024 to Jun 2024

True North Gems (TSXV:TGX)
Historical Stock Chart
From Jun 2023 to Jun 2024