TNR Gold Arranges Investment Loan, Provides Updates on Royalty Holdings on Ganfeng’s Mariana Lithium and McEwen’s Los Azules Copper, Gold and Silver Projects
NEWS RELEASE
TNR Gold Arranges Investment Loan, Provides Updates on Royalty Holdings on
Ganfeng’s Mariana Lithium and McEwen’s Los Azules Copper, Gold and Silver Projects
Vancouver, British Columbia – December 16, 2021: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “TNR
Gold” or the “ Company”) is pleased to announce that it has arranged with its lender a new long-term
investment loan in the amount of CAN $6.9 million maturing on July 31, 2023. The loan was granted
under the previously established long-term investment loan facility. Other terms and conditions of the
investment loan facility (as previously announced on January 15, 2019, January 5, 2016 and May 31,
2012) have not changed. The Company will repay in full the existing long-term investment loan, including
all accrued interest, on the maturity date of January 31, 2022.
“I am very pleased that the TNR Gold team finds the full support of our major shareholders as well as the
Company’s investment loan capital provider who continues to approve our business plan and long-term
strategic initiatives,” commented Kirill Klip, Executive Chairman of TNR. “It is clear that th is decision of
our investment loan capital provider is a r esounding show of confidence in TNR Gold’s long -term
business strategy, our management team and all recent positive developments in our portfolio of assets.
“We can now concentrate our efforts on building this green energy metals royalty and gold company by
maximizing the value of our royalty portfolio of lithium , copper, gold and silver projects that are
instrumental in the electric vehicle and green energy sectors . We believe that our royalty holdings are
undervalued, and their appropriate values are not reflected in Company’s share price. TNR Gold has
industry interest in our assets and the Company is working on potential new strategic partnerships to
provide benchmarks for the market valuations of our royalty holdings.
“Our Net Profits Royalty (”NPR”) holding on the Batidero I and II properties with Josemaria Resources
represents future growth potential for our royalty portfolio. We are also investigating new potential
acquisitions while our main focus remains on the development of the Shotgun Gold Project in Alaska.
The essence of our business model is to have industry leaders like Ganfeng Lithium , McEwen Mining
and Lundin Group as operators on the projects that will potentially generate royalty cash flows to
contribute and develop a significant long-term value for our shareholders.
“I would like to thank all our shareholders for your support and on your behalf to thank our very talented
team at TNR Gold who have achieved all these remarkable milestones for our Company.”
Mariana Lithium NSR Royalty Holding
On October 21, 2021 , TNR Gold announced that, further to the Company’s news release dated
September 27, 2021, International Lithium Corp. (“ILC”) announced the completion of the sale to Ganfeng
Lithium of ILC’s remaining 8.58% stake in Litio Minera Argentina S.A., the owner of the Mariana Lithium
Project in Salta, Argentina. The deal included confirmation that Ganfeng’s subsidiary, Litio Minera
1055 Dunsmuir Street, Suite 3500
Vancouver, British Columbia
V7X 1H7, Canada
T: +1 (604) 229-8129
E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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Argentina, would assume all rights or obligations that ILC had in respect of the Mariana property. TNR
Gold holds a 2.0% net smelter returns (“NSR”) royalty on the Mariana Lithium Project.
ILC’s news release issued on October 20, 2021 stated , “The Company announced on September 21,
2021 that it had contracted to sell its remaining 8.58% stake in Litio Minera Argentina S.A. and the
Company’s remaining rights and obligations related to the Mariana project to ILC’s partner Ganfeng
Lithium. The deal included confirmation that Litio Minera Argentina would assume all rights or obligations
that the Company had in respect of the Mariana property. On October 4, 2021 the Company announced
that it expected this sale to complete in mid-October. Completion has now taken place.”
Kirill Klip commented, “We are pleased with the news regarding Ganfeng Lithium, our NSR Royalty
holding and advancement of the Mariana Lithium Project to construction. I am also very pleased to see
that this deal between ILC and Ganfeng Lithium included confirmation that Ganfeng’s subsidiary, Litio
Minera Argentina, assumes all rights and obligations that ILC had in respect of the Ma riana Lithium
Project, including in respect to TNR Gold NSR Royalty Holding. Ganfeng Lithium has now consolidated
100% of the Mariana Lithium Project and advanced it to the construction stage. This news comes after a
55% increase in the measured and indica ted resource estimate from the previously announced 2020
increase of more than 250% in measured and indicated resources at the Mariana Lithium Project. We
extend our congratulations to Ganfeng and salute the people of Argentina on the successful approval of
the Environmental Impact Report by the Salta regional government in Argentina and approvals for the
construction of a plant with a designed annualized capacity of 20,000 tonnes per annum of lithium
chloride.
“We are very pleased to see that thi s new plan represents a 100% increase of the previously planned
lithium annual production rate presented in the Mariana Project preliminary economic assessment
(“PEA”), announced in our news release of January 28, 2019. It was the first PEA on the project and
provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow, which has now
been very significantly increased. We welcome the news from the Salta regional government, following
its discussions with Ganfeng, that the likely project expenditure to bring the Mariana Project to full
production is approximately US$600 million.
TNR does not have to contribute any capital for the development of the Mariana Project. The 2.0% NSR
Royalty on the entire Mariana Project with Ganfeng Lithium is an important part of TNR Gold’s portfolio,
(TNR holds a 0.2% NSR on behalf of a shareholder). The essence of our business model is to have
industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty
cashflows to contribute significant value for our shareholders.”
The ILC press releases and website material appear to be prepared by Qualified Persons and the
procedures, methodology and key assumptions disclosed therein are those adopted and consistently
applied in the mining industry, but no Qualified Person engaged by TNR has done sufficient work to
analyze, interpret, classify or verify ILC’s information to determine the current mineral resource or other
information referred to in its press releases. Accordingly, the reader is cautioned in placing any reliance
on the disclosures therein.
Los Azules Copper, Gold and Silver NSR Royalty Holding
On November 10, 2021, TNR announced that, further to the Company’s news release dated October 4,
2021, McEwen Copper Inc. (“McEwen Copper”) is advancing its work program at the Los Azules Copper
Project in Argentina.
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The news release issued by McEwen Mining Inc. on November 3, 2021, stated , “Activity at McEwen
Copper’s Los Azules project is moving ahead quickly. The exploration road has been reopened, three
work camp sites have been established, an expanded local labor force and preparations are underway
for starting a 10-drill, 174,000-foot (53,000 m) drilling program. Drilling will focus on conversion of Inferred
mineral resources to the Indicated category, as well as deeper exploration targets, where drilling ended
in strong copper mineralization. Drills are expected to turn towards the end of November and continue
through the end of Q2 2022.
“Construction of the new access road for providing the necessary year -round access to the project is
advancing as planned. As part of our ongoing involvement with local communities and businesses, local
contractors are being sourced for the construction.
“The contract for delivery of a pre -feasibility study (PFS) is at the tender stage and work is expected to
begin in Q4. Whittle Consulting has been engaged to assist in identifying opportunities to improve the
project that will be investigated during the PFS preparation.”
“We are very pleased to see this very exciting and significant development for the Los Azules Copper
Project and continued support by Rob McEwen of the newly created McEwen Copper,” stated Kirill
Klip. “It’s encouraging to see the start of a major dr illing program on this giant copper, gold and silver
project. The personal commitment from Rob McEwen and his investment of US$40 million enables the
rapid advancement for this major deposit to this new phase of development in an appropriate corporate
structure which will allow financing and further stages of development of Los Azules.
“TNR Gold holds a 0.4% NSR royalty on the entire Los Azules Copper Project (TNR holds a 0.04% on
behalf of a shareholder). TNR Gold does not have to contribute any capital for the development of Los
Azules. The essence of our business model is to have industry leaders like McEwen Mining as operators
on the projects that will potentially generate royalty cashflows to contribute significant value for our
shareholders.”
Batidero I and II Net Profits Royalty Holding
TNR Gold holds a 7% N PR holding o n Batidero I and II properties with Josemaria Resources Inc.
Josemaria Resources is part of the Lundin Group, a portfolio of companies producing a variety of
commodities in over 20 countries worldwide unified by a singular viewpoint: creating long-term value for
shareholders.
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty and gold company.
Over the past twenty-five years, TNR, through its lead generator business model, has been successful
in generating high -quality exploration projects around the globe. With the Company’s expertise,
resources and industry network, it identified the potential of the Los Azules Copper Project in Argentina
and now holds a 0.4% NSR Royalty on the project, which is being developed by McEwen Mining Inc ,
(TNR holds a 0.04% NSR on behalf of a shareholder).
In 2009, TNR founded International Lithium Corp. (“ILC”), a green energy metals company that was made
public through the spin-out of TNR’s energy metals portfolio in 2011. ILC held interests in lithium projects
in Argentina, Ireland and Canada.
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TNR retains a 2.0% NSR Royalty on the Mariana Lithium Project in Argentina with Ganfeng Lithium ,
(TNR holds a 0.2% NSR on behalf of a shareholder). Ganfeng’s subsidiary, Litio Minera Argentina, has
a right to repurchase 1.0% of the NSR Royalty on the Mariana Project, of which 0.9% relates to the
Company’s NSR Royalty interest. The Company would receive $900,000 on the completion of the
repurchase. The project is currently being advanced by Ganfeng Lithium International Co. Ltd.
TNR holds a 7% N PR holding o n the Batidero I and II properties with Josemaria Resources Inc.
Josemaria Resources is part of the Lundin Group, a portfolio of companies producing a variety of
commodities in over 20 countries worldwide.
TNR provides significant exposure to gold through its 90% holding in the Shotgun Gold porphyry project
in Alaska. The project is located in South western Alaska near the Donlin Gold project, which is being
developed by Barrick Gold and Novagold Resources Inc.
The Company’s strategy with Shotgun Gold Project is to attract a joint venture partner ship with one of
the gold major mining companies. The Company is actively introducing the project to interested parties.
At its core, TNR provides significant exposure to gold, copper , silver and lithium through its holdings in
Alaska (the Shotgun Gold porphyry project) and Argentina ( the Los Azules Copper and the Mariana
Lithium projects) and is committed to the continued generation of in-demand projects, while diversifying
its markets and building shareholder value.
On behalf of the Board of Directors,
Kirill Klip
Executive Chairman
www.tnrgoldcorp.com
For further information concerning this news release please contact +1 604-229-8129
Neither 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 accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain “forward -looking information”
within the meaning of applicable securities law. Forward -looking information is frequently characterized
by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “will”, “could” and
other similar words, or statements that certain events or conditions “may” or “could” occur, although not
all forward-looking statements contain these identifying words. Specifically, forward -looking statements
in this news release include, but are not limited to, statements made in relation to: TNR’s corporate
objectives, changes in share capital, market conditio ns for energy commodities, the results of McEwen
Mining’s, Ganfeng Lithium ’s and Josemaria Resources’ PEAs, and improvements in the financial
performance of the Company. Such forward -looking information is based on a number of assumptions
and subject to a variety of risks and uncertainties, including but not limited to those discussed in the
sections entitled “Risks” and “Forward -Looking Statements” in the Company’s interim and annual
Management’s Discussion and Analysis which are available under the Compan y’s profile on
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www.sedar.com. While management believes that the assumptions made and reflected in this news
release are reasonable, should one or more of the risks, uncertainties or other factors materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those described
in forward-looking information. In particular, there can be no assurance that: TNR will be able to repay its
loans or complete any further royalty acquisitions or sales; debt or other financing wi ll be available to
TNR; or that TNR will be able to achieve any of its corporate objectives. TNR relies on the confirmation
of its ownership for mining claims from the appropriate government agencies when paying rental
payments for such mining claims requested by these agencies. There could be a risk in the future of the
changing internal policies of such government agencies or risk related to the third parties challenging in
the future the ownership of such mining claims. Given these uncertainties, readers are cautioned that
forward-looking statements included herein are not guarantees of future performance, and such forward-
looking statements should not be unduly relied on.
In formulating the forward-looking statements contained herein, management has assumed that business
and economic conditions affecting TNR and its royalty partners, McEwen Mining Inc. , Ganfeng Lithium
and Josemaria Resources will continue substantially in the ordinary course, including without limitation
with respect to general industry conditions, general levels of economic activity and regulations. These
assumptions, although considered reasonable by management at the time of preparation, may prove to
be incorrect.
Forward-looking information herein and all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are made and are expressly qualified
in their entirety by this cautionary statement. Except as required by law, the Company assumes no
obligation to update forw ard-looking information should circumstances or management’s estimates or
opinions change.