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Trius Investments (TSXV:TRU) signs LOI to acquire gold project in Newfoundland

Mining
TSX:TRU
14 October 2020 14:13 (EDT)

Trius Investments (TRU) has signed a letter of intent with GBC Grand Exploration to acquire the 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 agreement, Trius will issue to GBC Grand Exploration a total of 1,435,000 common shares at a price of C$0.25 each and $100,000 in cash.

GBC will also be granted a one per cent royalty on the Twilite Project, half of which may be purchased by Trius for a one-off fee of $1 million. The project is currently subject to a two per cent royalty owing to the prior owners, half of which may also be purchased for $1 million.

Additional shares may be issued upon the satisfaction of certain mineral resource milestones.

Joel Freudman, President and CEO of Trius Investments, said the acquisition of the Twilite Project builds on the company’s strategy of establishing an advanced exploration-stage portfolio in the Central Newfoundland Gold Belt.

“Twilite has some promising historical exploration results and is in the vicinity of other large gold discoveries, which we believe bodes well for Twilite’s investment potential.

“This will especially be the case if we decide to commit follow-on capital to Twilite by engaging skilled consultants to carry out exploration work that can enhance Twilite’s value, whether for further development or resale,” he added.

Trius Investments (TRU) is currently up 3.23 per cent and is trading at 32 cents per share at 12:54pm EDT.

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