TNR Gold Update: Investment Loan Repaid, Ganfeng’s Mariana Lithium Project Begins Operational Phase
NEWS RELEASE
TNR Gold Update: Investment Loan Repaid, Ganfeng’s Mariana Lithium Project Begins
Operational Phase
Vancouver, British Columbia – February 21, 2023: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “TNR
Gold” or the “Company”) is pleased to announce that the Company has repaid in full the existing long-
term investment loan in the principal amount of CAN$6,943,237 and all accrued interest in the amount of
CAN$696,226. Further details of the loan are disclosed in the Company’s news release dated December
16, 2021.
“I am pleased that the TNR Gold team has achieved this very important major milestone for our Company
and provided another validation of our business model while demonstrating the success of our long-term
strategic initiatives,” commented Kirill Klip, Executive Chairman of TNR. “This long-term investment loan
allowed TNR Gold to build a strong portfolio of global assets. The loan has been repaid in full after the
Company monetized only a small part of its royalty holdings. We have generated significant capital,
extinguished debt a nd fortified our balance sheet , with TNR now in a strong financial position. These
significant transactions are the result of successful execution of TNR Gold’s long-term business strategy
by our management team and reflect all recent positive developments in our portfolio of assets.
“We are concentrating 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. The proceeds from
our partial sale of the NSR royalty on Ganfeng’s Mariana Lithium Project clearly demonstrates this. Strong
industry interest i n our assets has been generated, and the Company is working on potential new
strategic partnerships to increase the market valuations of our royalty holdings.
“Our Net Profits Royalty (” NPR”) holding on the Batidero I and II properties of the Josemaria Copper -
Gold project that is being developed by Lundin Mining represents future growth potential for our royalty
portfolio. We are also investigating other 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 TNR shareholders for your support and on your behalf to thank our team at TNR
Gold who have achieved all these milestones for our Company.”
#1120, 789 West Pender Street,
Vancouver, B.C.
V6C 1H2 , Canada
T: +1 (604) 229-8129
E-mail: [email protected]
Website: https://www.tnrgoldcorp.com
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Shotgun Gold Project - Alaska
The Shotgun Gold Project is an advanced -stage exploration prospect in southwestern Alaska. The
Company’s exploration field program at the Shotgun and Winchester prospects, located in the Taylor
Mountain Quadrangle, Alaska, will investigate the ge ochemical anomalies generated by the 1998
Novagold Resources soil surveys and the geophysical targets indicated by anomalies from the SJ
Geophysics 2011 and 2012 EM surveys.
“The Company’s strategy with the Shotgun Gold Project is to attract a partnership with a major gold
mining company. TNR Gold has successfully consolidated and updated its mining claims in Alaska and
is actively introducing the project to interested parties,” commented Kirill Klip. “ We may be at the
beginning of a great discovery . There is a clear path on how to move this prospective project forward
using the geological and geophysical research currently available to target drilling to expand the resource.
The next step is to acquire a partner that shares our vision and recognizes the growth potential and value
to be added to the Shotgun Gold Project over time. This exploration program will allow us to provide
additional information on TNR’s Shotgun Gold Project for our potential strategic partners.”
About Shotgun Gold Project
TNR holds a 90% interest in the Shotgun Gold Project that is located 190 kilometres south of the Donlin
Gold Project deposits within the Kuskokwim Gold Belt in southwestern Alaska. This area is emerging as
a multi -million-ounce gold district. The Shotgun p roperty includes a number of prospects, including
Shotgun Ridge and nearby Winchester. The Donlin Gold Project is an intrusion -associated system and
represents one of the largest undeveloped gold deposits in the world. The Company believes that there
are s everal key similarities between prospects on the Shotgun property and that of the Donlin Gold
Project deposits as well as other important intrusion-associated deposits worldwide.
The Company is targeting a large tonnage porphyry system at Shotgun Ridge. St ructural repeats, as
interpreted from airborne magnetic data and ground geophysical surveys, provide TNR with encouraging
targets for future drill testing.
Detailed information about the inferred mineral resource estimate is included in the technical report titled,
“Technical Report on the Shotgun Gold Project, Southwest Alaska”, dated May 27, 2013 that can be
found on the TNR Gold website at www.tnrgoldcorp.com or on SEDAR at www.sedar.com.
Mariana Lithium NSR Royalty Holding
On February 2, 2023, TNR Gold announced that it successfully closed the July 2022 royalty purchase
agreement with an Ontario limited partnership affiliated with Lithium Royalty Corp (“LRC”) for the sale of
a portion of its net smelter returns (“NSR”) royalty involving the Mariana Lithium Project (“Mariana”). LRC
purchased from TNR a 0.5% NSR royalty for US$9,000,000, including 0.05% NSR royalty sold by TNR
on behalf of its shareholder. This represents one-quarter of the NSR royalty held by the Company. LRC
is an arms’ length party to the Company.
As disclosed in previous news releases, TNR sold the portion of the NSR royalty which is not subject to
any buy-back rights. After the closing of the transaction with LRC, TNR now holds a 1.5% NSR royalty
on Mariana, including a 0.15% NSR royalty held on beha lf of a shareholder (which represents a 1.35%
NSR held by TNR and a 0.15% NSR in favour of the shareholder).
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Under the existing buy -back right, 1.0% of the Mariana NSR royalty can be purchased from TNR for
aggregate payment of CAN$1,000,000 at any time wit hin 240 days of “Commencement of Commercial
Production” as defined in the underlying agreement. The Company would receive CAN$900,000 and its
shareholder would receive CAN$100,000 on the completion of a repurchase under the underlying
agreement. If such purchase was made, TNR would hold a 0.45% NSR and its shareholder would hold
a 0.05% NSR.
Representatives of Ganfeng Lithium confirmed to the Governor of Salta Gustavo Sáenz that the Mariana
Project, on which construction began last June, will start produci ng in 2024, an estimated 20 thousand
tons per year of lithium chloride. The Government of Salta has reported on Ganfeng Lithium’s
announcement that the operational phase of the Mariana Lithium Project began in January 2023.
TNR believes its royalty holdings are undervalued, and their appropriate values are not reflected in the
Company’s share price; this transaction clearly demonstrates this.
Los Azules Copper, Gold and Silver NSR Royalty Holding
On January 30, 2021, TNR Gold announced that, McEwen Mining Inc. (“McEwen Mining”) provided an
update on the Los Azules Copper Project in San Juan, Argentina. TNR holds a 0.4% net smelter returns
royalty (“NSR Royalty”) (of which 0.04% of the 0.4% NSR Royalty is held on behalf of a shareholder) on
the Los Azules Copper Project. The Los Azules Copper Project is held by McEwen Copper Inc., a
subsidiary of McEwen Mining.
The news release issued by McEwen Mining on January 26, 2023, stated:
“McEwen Copper Inc., 68%-owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), today
reports rich copper values over attractive widths resulting from infill drilling at its Los Azules
project. Los Azules is a large porphyry copper -gold-silver deposit with considerable growth
potential, where its ultimate depth and lateral extents remain to be determined.
Current Drill Program
Drilling resumed in October 2022. This season’s +75 holes and +25,000 -meter program is
designed to:
• Increase drill hole density to upgrade the copper resource classification to measured and
indicated to better understand the payback pit design.
• Provide metallurgical, hydrological and geotechnical data to facilitate mine design.
• Test for potential extensions of the resource to the north, south and at depth to determine how
much larger the deposit could be.
Since October, some 11,900 m have been drilled from 46 holes.
“We have transitioned into 2023 with tremendous momentum, backstopped by 9 on-site drills, an
active community engagement program and a fully staffed technical team advancing Los
Azules towards feasibility,” commented Michael Meding, Vice President and General Manager of
McEwen Copper. “We are delivering a first -class technical evaluation on a copper deposit that
will put Argentina at the forefront of critical metals production supporting worldwide electrification
and a greener future for generations to come.”
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Kirill Klip commented, “We are pleased to see these significant developments on the advancing Los
Azules Project towards feasibility and continued support by Rob McEwen of McEwen Copper . It’s very
encouraging to see the opportunity to expand the deposit, and the involvement of Rio Tinto, which may
accelerate realizing the potential of the Los Azules Project with Rio Tinto’s innovative technology.
“The personal commitment from Rob McEwen and his investment of US$40 million enabled the rapid
advancement of this deposit to this new phase of development in an appropriate corporate structure.
McEwen Copper has raised more than US$81 million and is well positioned for further stages of
development of the Los Azules Project.
“TNR Gold does not have to contribute any capital for the development of Los Azules.”
Batidero I and II Net Profits Royalty Holding
On April 28, 2022, TNR Gold announced that Lundin Mining Corporation (“Lundin”) completed a plan of
arrangement pursuant to which Lundin acquired all of the issued and outstanding shares of Josemaria
Resources Inc. (“ Josemaria Resources”) and Josemaria Resources became a subsidiary of Lundin.
TNR holds a 7% net profit interest roya lty (“NPR”) on the Batidero I and II properties of the Josemaria
copper-gold project located in San Juan, Argentina that is owned by Josemaria Resources. In its news
release dated April 28, 2022, Lundin stated:
“The addition of the Josemaria project to Lu ndin Mining’s portfolio solidifies our position as a
leading base metals producer with high-quality copper exposure and significant growth. We look
forward to building upon the excellent reputation of Josemaria Resources in San Juan
and Argentina,” said Peter Rockandel, Lundin Mining President and CEO, “We are excited to lead
the project through the remaining stages of development and into production to create significant
value for all stakeholders…
“Josemaria Project Update
As announced by Josemaria Resources on April 11, 2022, the Mining Authority of San Juan,
Argentina has approved the Environmental Social Impact Assessment for the Josemaria Project,
marking a significant milestone in the project’s permitting process. Lundin Mining and the
Josemaria project team are working with the national and provincial authorities to progress the
project through the next stages of development. Discussions regarding commercial agreements
and securing of additional sectoral permits are ongoing and anticip ated later this year prior to a
definitive construction decision.
The Josemaria project is progressing through basic engineering with procurement of long -lead
equipment, including securing key items of crushing and processing. Study work is ongoing,
including updating of cost estimates to be reflective of current conditions and evaluation of
potential scope changes compared to plans envisaged in the Josemaria Resources
2020 Feasibility Study (“NI 43-101 Technical Report, Feasibility Study for the Josemaria Copper-
Gold Project, San Juan Province, Argentina” dated November 5, 2020 (the “Josemaria Resources
2020 Feasibility Study”)). Lundin Mining aims to complete an updated Technical Report for the
project in the fourth quarter of 2022. While this work has not yet concluded, the Company expects
the initial capital expenditure estimate of the project to be greater than $4 billion. Effective post -
closing, the Company intends to spend up to $300 million to advance the project ahead of a
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construction decision in th e second half of 2022, including engineering, commitments for long
lead items, preconstruction activities and drilling.
As part of the updated Technical Report, Lundin Mining plans to complete new Mineral Reserve
and Resource estimates. Approximately 20, 600 meters of drilling have been completed on the
project since the most recent 2020 Josemaria Resources mineral estimates and 35,000 meters
of additional drilling are planned to be completed ahead of the new estimates.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects
in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily
producing copper, zinc, gold and nickel.”
TNR’s 7% NPR holding on the Batidero I and II properties of the Josemaria Project held by Lundin Mining
represents future growth potential for the royalty portfolio.
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty and gold company.
Our business model provides a unique entry point in the creation of supply chains for critical materials
like energy metals that are powering the energy rEVolution, and the gold industry that is providing a
hedge for this stage of the economic cycle.
Our portfolio provides a unique combination of assets with exposure to multiple aspects of the mining
cycle: the power of blue-sky discovery and important partnerships with industry leaders as operators on
the projects that have the potential to generate royalty cashflows that will contribute significant value for
our shareholders.
Over the past twenty-seven years, TNR, through its lead generator business model, has been successful
in generating high -quality global exploration projects. With the Company’s expertise, resources and
industry network, the potential of the Mariana Lithium Project and Los Azules Copper Project in Argentina
among many others have been recognized.
TNR holds a 1.5% NSR Royalty on the Mariana Lithium Project in Argentina, of which 0.15% NSR royalty
is held on behalf of a shareholder. Ganfeng Lithium’s subsidiary, Litio Minera Argentina (“LMA”), has the
right to repurchase 1.0% of the NSR royalty on the Mariana Project, of which 0.9% is the Company’s
NSR Royalty interest. The Company would receive CAN$900,000 and its shareholder would receive
CAN$100,000 on the repurchase by LMA, resulting in TNR holding a 0.45% NSR royalty and its
shareholder holding a 0.05% NSR royalty.
The Mariana Lithium Project is 100% owned by Ganfeng Lithium. The Mariana Lithium Project has been
approved by the Argentina provincial government of Salta for an environmental impact report, and the
construction of a 20,000 tons-per-annum lithium chloride plant has commenced.
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TNR Gold also holds a 0.4% NSR Royalty on the Los Azules Copper Project, of which 0.04% of the 0.4%
NSR royalty is held on behalf of a shareholder . The Los Azules Copper Project is being developed by
McEwen Mining.
TNR also holds a 7% net profits royalty holding on the Batidero I and II properties of the Josemaria Project
that is being developed by Lundin Mining. Lundin Mining is part of the Lundin Group, a portfolio of
companies producing a variety of commodities in several 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 Southwestern Alaska near the Donlin Gold project, which is being
developed by Barrick Gold and Novagold Resources. The Company’s strategy with the Shotgun Gold
Project is to attract a joint venture partnership with a major gold mining company. The Company is
actively introducing the project to interested parties.
At its core, TNR provides a wide scope of exposure to gold, copper, silver and lithium through its holdings
in Alaska (the Shotgun Gold porphyry project) and royalty holdings in Argentina (the Mariana Lithium
project, the Los Azules Copper Project and the Batidero I & II properties of the Josemaria Project), 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 Kirill Klip +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 conditions for energy commodities, the successful
completion of sales of portions of the NSR royalties and decisions of the government agencies and other
regulators in Argentina . 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 oth er factors materialize, or should underlying
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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 financings will 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 Lundin Mining will continue substantially in the o rdinary 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.