TRU Precious Metals (TRU) has entered into an asset purchase agreement to acquire a license adjacent to its flagship Golden Rose Project.
This includes any related permits and technical data.
The vendor will receive the following consideration from TRU for the purchased assets:
- $25,000 in cash
- 135,000 common shares in the capital of TRU at a deemed price of $0.16 per share
- The granting by TRU of a 2 per cent net smelter returns royalty from any future mineral production on the Property, of which 1 per cent can be repurchased by TRU for $1,000,000.
All TRU Shares issuable under the purchase agreement will be subject to a hold period expiring four months and one day from the date on which such TRU Shares are issued.
Completion of the transaction will be dependent on governmental claims transfer processing times and remains subject to regulatory approval by the TSX Venture Exchange.
No finder fees are being paid in connection with the purchase.
TRU also announces that it has separately staked two additional mineral licenses covering 1875 hectares contiguous with Golden Rose.
Joel Freudman, Co-Founder and CEO of TRU, commented,
“With soil sampling and geophysical surveying continuing to yield encouraging results, and drilling ongoing as we await initial assays, these tuck-in acquisitions of prospective ground round out TRU’s existing district-scale land package at Golden Rose.
“As we learn more about the geology of the area as our drilling program unfolds, we are commensurately becoming more enthusiastic,” he added.
The Rose Gold Project is located in the Central Newfoundland Gold Belt.
TRU Precious Metals Corp. (TRU) is up 2.86 per cent and is trading at $0.18 per share at 3:19 p.m. ET.
