TNR Gold Provides Update of Activities
NEWS RELEASE
TNR Gold Provides Update of Activities
Vancouver B.C. August 28, 2017 : TNR Gold Corp. (TSX-V: TNR) (“TNR” or the “ Company”) is
pleased to announce an update of activities and vision for the coming months.
Last year we began taking measures to improve our balance sheet and maintain TNR’s portfolio of
assets. Senior management and directors accepted a 40% cut of debt owed to them from the Company
and a more than a 50% reduction in management fees. Certain debts to former management were
settled with TNR’s shareholdings in International Lithium Corp., issued at $0.20 cents per share, higher
than the market price at the time of issue.
In order to conserve cash and prevent shareholder dilution at the currently undervalued share price ,
management and directors have agreed to forego their fees until there is improvement in the market
performance and financial condition of the Company. In particular, management is focused on
preserving the Company’s assets while carefully managing the Company’s liquidity and disposing the
absolute minimum of any of our liquid assets.
Management and the Board’s belief is that an era of “Energy r EVolution” has begun, and the
electrification of transportation coupled with a global push for carbon-neutral energy supplies will lead to
a demand for energy metals like lithium and copper. Our company is well positioned to participate in
this market trend and with that , TNR is working to wards becoming a green energy metals royalty
company.
TNR now has a talented dedicated team to build our portfolio of assets in order to capitalize on the
current investment trends. Increasing electrification of transportation and the energy sectors are
expected to boost the demand for critical commodities an d energy metals. Our assets allow us to
participate in these opportunities and build the Company for the benefit of all stakeholders.
Los Azules Copper Project Royalty
TNR, through its lead generator business model, has been successful in generating high quality
exploration projects in the Americas and Europe. Utilizing management’s expertise, the Company
resources and industry network, TNR identified the pr oject portfolio of International Lithium Corp.
(TSXV: ILC) and identified the potential of the Los Azules copper project in Argentina at an early stage
of exploration. TNR now holds a 0.36% NSR royalty on the Los Azules prospect.
In a news release dated May 15, 2013 in relation to the Los Azules copper project in San Juan
Province, Argentina. McEwen Mining Inc. summarizes an updated resource estimate completed on the
property. In its press release, McEwen Mining reports an indicated resource estimate of 389,000,000
tonnes with 0.63% copper and an inferred resource of 1,397,000,000 tonnes at 0.46% copper at a
cutoff grade of 0.35% copper. Details regarding the manner in which the resource estimate was
1111 Melville Street, Suite 1100
Vancouver, British Columbia
V6E 3V6, Canada
T: 604-700-8912
E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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calculated are available under the profile of McEwen Mining at SEDAR http://www.sedar.com. Further
details on the project and the work performed on it can be found in t he technical report titled, “Los
Azules Porphyry Copper Project, San Juan Province, Argentina” dated August 1, 2012, prepared by D.
Ernest Winkler, P.Eng., Robert Sim, P.Geo., Bruce Davis, PhD, FAusIMM and James K. Duff, P.Geo.,
and press releases issued by McEwen Mining, which can be found on SEDAR.
McEwen Mining's 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 Gold Corp. has
done sufficient work to analyze, interpret, classify or verify McEwen Mi ning's information to determine
the current mineral reserve or resource or other information referred to in their press releases.
Accordingly, the reader is cautioned in placing any reliance on the disclosures therein.
In a news release dated May 4, 2017, McEwen Mining (“MM”) further reported on Los Azules; “We
spent $6.3 million at the Los Azules project on a combination of infill and exploration drilling, significant
advances were made in determining the best logistics, power an d infrastructure options and further
economic and engineering modeling of the production. Results from the drilling campaign are expected
to be finalized during the second half of 2017.” Another MM News release dated August 2, 2017,
reported, “During Q2 20 17 we spent $0.8 million at the Los Azules project, primarily on finalizing the
2017 drilling campaign initiated in Q1. We are currently preparing a new Preliminary Economic
Assessment (PEA), which is expected in the third quarter of 2017.”
Argentina business is expanding with its newly elected administration creating policies that are
favorable for foreign investment and resource development. Rising copper prices are also helping to
drive renewed interest in copper projects like Los Azules.
TNR’s strategy with the L os Azules royalty holdings is to attract a strong financial partner and sell a
portion of the NSR to eliminate the long-term debt of the Company.
During the first part of this year TNR created a new marketing strategy , updated its website and
enhanced marketing materials. The project has been presented to the industry’s community, attracting
increased interest in Los Azules as TNR works towards forming a strong partnership through a staged
transaction connected to the milestones achieved by the Los Azules copper project.
Mariana Lithium Project Royalty
TNR holds a significant shareholding interest (15%) in International Lithium Corp. (“ILC”), a green
energy metals company that was created through the spinout of TNR’s energy metals portfolio in
2011. ILC holds interests in lithium projects in Argentina, Ireland and Canada.
TNR retains a 1.8% NSR royalty on the Mariana lithium property in Argentina. ILC has a right to
repurchase 1.0% of the NSR. On exercise of the repurchase right, TNR would receive $900,000. The
project is being advanced in a joint venture between ILC and Ganfeng Lithium Co. Ltd., a leading
lithium product manufacturer seeking to secure its raw materials supply.
Shotgun Gold project
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. Alaska’s
attractiveness is rising according to the investment index of the Fraser institute’s “Annual Survey of
Mining Companies”.
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TNR published a resource estimate on the Shotgun in 2013. TNR reported an inferred r esource of
20,734,313 tonnes at 1.06 grams per tonne (“g/t”) gold for a total of 705,960 ounces gold (“Au”) using a
0.5 g/t Au cut -off grade (news release issued on April 22 , 2013 and technical report titled, “Technical
Report on the Shotgun Gold Project”, dated May 27, 2013 and filed on SEDAR).
The Company’s strategy with Shogun is to attract investment on a private equity basis to advance the
project. Once the project has demonstrated increased potential for advanced exploration activities the
aim is to identify a joint venture with one of the gold major mining companies. The Company is actively
introducing the project to interested parties.
Afzaal Pirzada, Geological Consultant of the Company, and a “Qualified Person” for the purposes of
National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved
the scientific and technical information contained in this news release.
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become an energy metals royalty company. Over the past twenty -two
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 0.36% NSR on
the prospect.
TNR is also a major shareholder of International Lithium Corp. (“ILC”) , with current holdings of
approximately 15% of the outstanding shares of ILC. ILC holds interests in lithium projects in Argentina,
Ireland and Canada.
TNR retains a 1.8% NSR on the Mariana property in Argentina. ILC maintains a right to repurchase
1.0% of the NSR on the Mariana property of which 0.9% relates to the Company’s NSR interest. The
Company would receive $900,000 on execution of the repurchase. The project is currently being
advanced in a joint venture between ILC and Ganfeng Lithium International Co. Ltd.
At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska (the
Shotgun gold porphyry project) and Argentina, and is committed to 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 +1 604-700-8912
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
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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”, “expec t”, “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 conditions for energy commodities, 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 Company’s
profile on 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 repay its loans or complete any further royalty acquisitions or sales; debt or other financing will be
available to TNR; or that TNR will be able to achieve any of its corporate objectives. 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. and
International Lithium Corp. or its joint venture partner, Ganfeng Li thium International Co. Ltd. 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 forward -looking information should circumstances or management’s
estimates or opinions change.