TRU
PRECIOUS METALS SIGNS
BINDING
TERM
SHEET
WITH
ALTIUS MINERALS SUBSIDIARY
FOR
OPTION TO PURCHASE GOLDEN
ROSE PROJECT
Fredericton,
New Brunswick – January
7,
2021
-- InvestorsHub NewsWire -- TRU
Precious
Metals Corp. (TSXV:TRU; OTCQB:TRUIF) ("TRU"
or the
"Company") is pleased to
announce that it
has
entered into a binding
term
sheet with
a
subsidiary of TSX-listed
Altius
Minerals Corporation (TSX:ALS)
("Altius")
for the
option (the
"Option")
to
purchase Altius'
Golden
Rose project located in
the
southwestern portion of the Central Newfoundland
Gold
Belt (the
"Golden Rose
Project").
TRU
Co-Founder and CEO Joel Freudman commented: "We are thrilled to be
partnering with Altius to explore and develop the
Golden
Rose Project. This
partnership
is
consistent with our communicated strategy to build towards a
district-scale presence in central Newfoundland."
The
Golden Rose Project is a regional-scale land package covering 105
kilometres squared (km2)
within the Valentine Lake structural corridor, and is easily
accessible via provincial highway and forest access
roads. It is located
between Marathon Gold Corp.'s
("Marathon")
Valentine
Gold Project to the northeast, where Marathon has
reported 3.09
million
ounces (Moz.) Measured and
Indicated
gold (Au) resources (comprised of
54.9
million
tonnes (Mt) at 1.75
grams per
tonne (g/t)
Au) +
0.96 Moz. Inferred Au resources
(16.8 Mt
at 1.78 g/t
Au),[1]
and
Matador Mining's Cape Ray Gold Project to the southwest,
which also has a known gold
deposit.[2]
Figure
1: Golden Rose Project Regional Location
Mr.
Freudman
added,
"On closing,
this transaction
will
bring Altius into TRU's shareholder base as a strategic
investor with an
expected
19.9%
stake. This is a pivotal
development for us, as
this
fuels our rapid progress to
date and
further
enhances
TRU's business prospects
going forward. Coupled
with our
100%-owned Twilite
Gold
Project, TRU will now
have two
highly-prospective gold exploration properties along a fault zone
that hosts multiple known major deposits."
Geological
Description
The
Valentine Lake structural corridor transects the full length of the
Golden Rose Project, hosting over 45 km of prospective
strike-length for Au mineralization.
In terms
of top prospects, the South Woods Lake zone has yielded historical
grab samples up to 65 g/t Au, and drill intercepts including 1.37
g/t Au over 26.31 metres (m) and 2.14 g/t Au over 16.11 m.
To
date, the
zone has been outlined to greater than
550 m on
surface and remains open along strike and at
depth. Gold mineralization at the
South Woods Lake zone is hosted by variably textured,
sheared
and
brecciated, intrusive
rock, and within
of a
network of
thin, anastomosing,
quartz–pyrite
±arsenopyrite
veins
and
fractures.
Preliminary work
suggests the gold occurs as fine,
free gold.
Altius
has also identified no fewer than five other historic and newly
discovered prospects at the
Golden Rose Project, both north and south
of South Woods Lake, including
several at which
historic
high-grade unsourced quartz-rich
float have been
found. Float
samples testing up to
196.7 g/t Au were found at the Falls Zone, which has exposed
mineralization with anomalous gold grades, as well as
samples
at
Glimmer Pond of
up to
213.8 g/t Au, which has
strongly altered volcanic or sedimentary rock on the southeast side
of the pond with anomalous gold grades.
Figure 2: Golden Rose Project Historical
Drilling at South Woods Lake Zone
The
technical information herein, including assays, relating to the
Golden Rose Project is historical in
nature and has not been
independently verified by TRU. Note that rock
grab and float
samples
and drill
hole intervals are selective by
nature, and values reported
may not represent the true grade or style of mineralization across
the Golden Rose
Project.
Terms
of the Option Agreement
In order
to acquire a 100% interest in the Golden Rose
Project, the Company
must
issue
such
number of common shares in the
capital of the Company ("TRU Shares") as set forth
below, and
fund
a total
of $3,000,000
in exploration expenditures:
|
Share
Issuance
|
Exploration
Funding Commitment
|
|
7,115,000
TRU
Shares, at a deemed price
of $0.25 per
Share, upon
receipt
of approval of the
definitive agreement
to be entered into in respect of the Option (the
"Option
Agreement")
from
the TSX
Venture Exchange (the "Exchange")
|
Nil
|
|
800,000
TRU Shares on
or before
the date that is six (6) months from the date of the Option
Agreement
|
$500,000
by the first anniversary of the Option Agreement
|
|
800,000
TRU Shares
on or
before the date that is eighteen (18) months from the date of the
Option Agreement
|
$1,000,000 by the
second anniversary of the Option Agreement
|
|
1,400,000
TRU Shares on or before the date
that is twenty-four
(24) months from the
date of the Option Agreement
|
$1,500,000 by the
third anniversary of the Option Agreement
|
Upon
exercise of the Option,
Altius
will
retain a 2.0% net
smelter
returns
royalty
from any
future mineral production at the
Golden
Rose Project, subject to a
proportionate reduction for any underlying
royalty
obligations held by third parties.
The
transaction remains subject to regulatory approval by the
Exchange, and to other
conditions precedent including the preparation of a
National
Instrument 43-101
technical
report in respect of the Golden Rose Project. Trading in the
TRU
Shares
will remain halted pending further filings with the
Exchange.
The
parties are working on the preparation of the Option Agreement. In
addition, TRU will start evaluating various equity financing
options to fund its anticipated initial
exploration
commitment at the Golden Rose Project, along with the
first
phase of the Company's
intended
drill program at the Twilite
Gold
Project.
Qualified Person
Barry
Greene, P.Geo.
is a qualified person as defined by National Instrument 43-101 and
has reviewed and approved the contents and technical disclosures in
this press release. Mr. Greene
is
a director and officer
of the Company and owns
securities of the Company.
About
TRU
Precious Metals Corp.
TRU seeks
unique value-creation opportunities, and
has
assembled a portfolio of gold
exploration properties in the Central Newfoundland Gold Belt. The
Company's common shares trade on the TSX Venture
Exchange under the symbol
"TRU" and on the OTCQB
Venture Market under the symbol "TRUIF".
TRU
is a
portfolio company of Resurgent Capital Corp. ("Resurgent"), a
merchant bank providing venture capital markets advisory services
and proprietary financing. Resurgent works with promising public
and pre-public micro-capitalization
Canadian companies. For more information
on Resurgent
and its
portfolio companies, please visit Resurgent's
LinkedIn
profile
at
https://ca.linkedin.com/company/resurgent-capital-corp.
For
further information, please contact:
Joel
Freudman
Co-Founder, President
& CEO
TRU
Precious Metals Corp.
Phone:
(647) 880-6414
Website:
www.trupreciousmetals.com
Julie
Hajduk
President
and CEO
Purple
Crown Communications Corp.
Phone:
(604) 609-6169
Email:
julie@purplecrown.ca
Website:
https://purplecrown.ca/
To
connect with TRU Precious Metals Corp. via social media, below are
links:
Facebook
https://www.facebook.com/TRU-Precious-Metals-Corp-100919195193616
Twitter
https://twitter.com/corp_tru
LinkedIn
https://www.linkedin.com/company/tru-precious-metals-corp
YouTube
https://www.youtube.com/channel/UCHghHMDQaYgS1rDHiZIeLUg/
Cautionary
Statements
Neither
the
TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
The
technical information herein relating to the Golden Rose
Project has been supplied
by Altius
and has
not been independently verified by TRU.
Information in this
press release regarding Marathon Gold's Valentine Gold Project and
Matador Mining's Cape Ray Gold Project have been taken from those
respective companies' websites, and has not been independently
verified by the Company.
These
links are included in this press release as inactive textual
references for reference purposes only and the information on or
connected to these websites is not part of, or incorporated by
reference into, this press release.
This
press release contains certain forward-looking statements,
including those relating
to entering into the
Option Agreement; acquiring,
exploring,
and
monetizing the
Golden
Rose Project and the Company's
other mineral
exploration
properties;
the
application to
and
approval of the Exchange for the transactions
contemplated herein; and potential
financing activity by the Company. These statements are
based on numerous assumptions regarding the Golden Rose
Project and the
Option
that are
believed by management to be reasonable in the
circumstances, and are subject to a
number of risks and uncertainties, including without
limitation: mineralization hosted
on adjacent and/or nearby properties is not necessarily indicative
of mineralization hosted on the Golden Rose
Project; the exploration or
monetization potential of the Golden Rose
Project and the nature and
style of mineralization at the Golden Rose
Project; challenges in
identifying, structuring, and executing additional
investments and
acquisitions, on favourable terms or at all; risks inherent in
mineral exploration activities and investments in
the mineral exploration sector; volatility in
financial markets, economic conditions, and precious metals prices;
and those other risks described in the Company's continuous
disclosure documents. Actual results may differ materially from
results contemplated by the forward-looking statements herein.
Investors and others should carefully consider the foregoing
factors and should not place undue reliance on such forward-looking
statements. The Company does not undertake to update any
forward-looking statements herein except as required by applicable
securities laws.