True North Gems Signs Option Agreement with Razore Rock to Acquire 70% Interest in the True Blue Rare Earth Elements Property, Yukon
True North Gems Signs Option Agreement with Razore Rock to Acquire
70% Interest in the True Blue Rare Earth Elements Property, Yukon
Vancouver – October 9, 2019 – True North Gems Inc. (TGX: TSX -V) (“True North” “TGX ” or the
“Company”) announces today, the signing of an Option Agreement with Razore Rock Resources Inc.
(“Razore Rock”) to earn up to a 70% working interest in the True Blue Rare Earth Element s (“REE”)
Property in the Yukon Territory.
The True Blue Property consists of 68 mining claims in the Ketza -Seagull district of the Southern
Yukon in the Watson Lake Mining District comprising 13.3 square kilomtres. The property is located
approximately 166 km northeast of Whitehorse and represents one of four adjacent project areas
held by TGX in the region.
Razore Rock can earn a 70% interest in the Property by incurring expenditures in the aggregate
amount of $300,000 over three years and issuing an aggregate o f 600,000 common shares with
200,000 shares to be issued on closing; a further 200,000 shares to be issued on or before November
30, 2020; and, a further 200,000 shares to be issued on or before November 30, 2021. True North
is undertaking an exploration program on a group of claims that includes the True Blue Property.
Razore Rock has agreed to reimburse True North for its pro-rata share of the costs of the exploration
program in the amount of approximately $50,000 based upon assessment work to be filed by True
North on the Property in the amount of approximately $50,000. Once Razore Rock earns its 70%
interest, the parties will form a joint venture and contribute pro-rata (Razore Rock 70%, True North
30%) to the further exploration and development of the Property. If a party is reduced to a 10% or
less interest in the Property that party’s interest will be reduced to a 2% net smelter returns royalty
with the right of the remaining party to acquire a 1% net smelter returns royalty at any time for the
payment of $1,000,000.
The transaction is subject to regulatory approval.
Andrew Lee Smith, Interim CEO
On behalf of the Board of Directors of True North Gems Inc.
For further information, contact:
Email: [email protected]
www.truenorthgems.com
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 accurac y 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 t erms 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 req uirements; 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 t he 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 other wise required by applicable
securities legislation.