True North Gems provides update on bankruptcy process
True North Gems provides update on bankruptcy process
Vancouver – July 25, 2017 – True North Gems Inc. (TGX: TSX-V) (“True North” “TGX” or the “Company”) announces
that Greenland Venture A/S (“GV”) has issued a demand to the Company for repayment of all outstanding indebtedness
owing by True North Gems Greenland A/S (“TNGG”). GV demanded repayment of principal and interest of DKK
12,165,674.61 as of May 24, 2017 plus interest at the rate of 2% per month, calculated and compounded monthly.
The Company is a guarantor of the loans. In September 2016 TNGG initiated voluntary bankruptcy proceeding under
the Bankruptcy Act in Greenland and was unable to repay the loans owing to GV. GV owned 7% of the outstanding
shares of TNGG.
If the Company is unable to repay the loans GV may commence legal proceedings against the Company.
For further information please contact:
True North Gems Inc.
“Glen Macdonald”
Glen Macdonald, Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture 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 d ocument or the document(s) referred to herein. Statements that
express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (ofte n, but not always, using
words or phrases such as “expects”, “antici pates”, “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; stri p 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 impl ied 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 op eration; 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 fro m 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 op erational and
development risks, re gulatory 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 c limate, dilution, share
price volatility, competition, loss of key employees; additional funding requirements and defective title to mineral claims o r property]. This list is not
exhaustive. See also, for example, the risks disclosed in the Company’s other disc losure documents filed at www.sedar.com, including, without
limitation, those disclosed in the Company’s management’s discussion & analysis. The Company expressly disclaims any intentio n or obligation to
update or revise any forward-looking statements, except as otherwise required by applicable securities legislation.
The comments above are provided Without Prejudice.