TRU Signs Definitive Option Agreement for Consolidation of Final Contiguous Gold Property at Golden Rose Project
TRU Signs Definitive Option Agreement for Consolidation
of Final Contiguous Gold Property at Golden Rose Project
Toronto, Ontario – June 16, 2022 – TRU Precious Metals Corp. (TSXV:TRU; OTCQB:TRUIF ; FSE:706 )
(“TRU” or the “Company”) is pleased to announce that it has signed a definitive option agreement dated June 15,
2022 (the “Option Agreement”) with Quadro Resources Ltd. (“Quadro”), pursuant to which TRU has been granted
the option to acquire up to an aggregate 65% ownership in Quadro’s Staghorn Project.
The Staghorn Project (the “Staghorn Project”) is a large claim package of 133 claim units in eight mineral licences
covering 3,325 hectares (33.25 square kilometres (“km2”)) with a 12 km strike length of the auriferous Cape Ray
Fault Zone. The Staghorn Project is comprised of two distinct groups of licenses which are immediately within
and/or adjacent to TRU’s flagship Golden Rose Project (“Golden Rose”). Golden Rose is a reg ional-scale land
package covering approximately 236 km2 in the Central Newfoundland Gold Belt, including approximately 45
km of strike length along the deposit-bearing Cape Ray - Valentine Lake Shear Zone (the “CR-VL Shear Zone”).
Joel Freudman, Co-Founder and CEO of TRU commented: “This transaction is fundamental to TRU’s vision of
consolidating Golden Rose. Upon completion, we will achieve TRU’s strategy of complete consolidation of the
CR-VL Shear Zone, between our immediate neighbours Marathon Gold and Matador Mining, both of whom have
significant gold deposits on their properties . Almost exactly one year ago on June 15, 2021, we unveiled our
corporate strategy entitled TRU Vision 2021, where we outlined our intent to build shareholder value by exploring
and developing and, when opportune, consolidating the CR-VL Shear Zone. I am therefore pleased with today’s
announcement as we continue to work diligently and strategically to develop a turn-key gold and copper project.’’
Figure 1: Staghorn Project Claims Under Option
Terms of the Option Agreement
Pursuant to the terms of the Option Agreement, Quadro has granted TRU the exclusive right and option to acquire
up to an aggregate 65% interest in its Staghorn Project in two stages.
In order to acquire an initial 51% interest in the Staghorn Project, TRU must make the following payments, issue
the following shares in the capital of TRU (the “Shares”) , and incur the following exploration and drilling
expenditures on the Staghorn Project on or before the corresponding dates set forth below:
Date Purchase Consideration Exploration and Drilling
Expenditures
Upon the effective (closing) date of
the Option Agreement (the
“Effective Date”)
$100,000 in Shares, at a deemed
price (the “Issuance Price”) equal
to the greater of: (a) the volume -
weighted ave rage trading price of
the Shares on the TSX Venture
Exchange (the “Exchange”) for the
twenty ( 20) previous consecutive
trading days; and (b) the lowest
discounted price permitted
pursuant to the policies of the
Exchange
Nil
On or before the one year
anniversary of the Effective Date
(i) $ 25,000 in cash; and (ii)
$100,000 in Shares at the Issuance
Price
Exploration expenditures of an
aggregate of $200,000, including a
minimum of $120,000 of drilling
activity
On or before the two year
anniversary of the Effective Date
(i) $100,000 in cash; and (ii)
$150,000 in Shares at the Issuance
Price
Exploration expenditures of an
aggregate of a f urther $ 300,000,
including a minimum of a further
$180,000 of drilling activity
On or before the three year
anniversary of the Effective Date
Nil Exploration expenditures of an
aggregate of a further $600,000,
including a minimum of a further
$360,000 of drilling activity
Upon acquiring the initial 51% interest in the Staghorn Project, TRU may acquire an additional 14% interest by
doing the following: (i) pay $200,000 in cash; (ii) issue $2 50,000 in Shares at the Issuance Price; and (iii) incur
an additional $850,000 of exploration expenditures, including a minimum of $510,000 of drilling activity.
Upon TRU acquiring the 51% interest in the Property or the 65% interest in the Property as the case may be, TRU
and Quadro shall enter into a joint venture agreement containing normal industry standard terms.
The closing of the Option Agreement remains subject to customary conditions and government approval of
Quadro’s filed assessment reports for the Staghorn Project, and also remains subject to regulatory approval by the
Exchange. The transaction is an “arm’s length transaction” as defined in the policies of the Exchange. There are
no finder fees payable in connection with the Option Agreement. All Shares issued under the Option Agreement
will be subject to a hold period expiring four months plus a day from the date on which the Shares were issued.
Qualified Person and National Instrument 43-101 Disclosures
The reported grades in this press release are not representative of mineralization across the properties and TRU
has not done sufficient work to independently verify the reported results.
Barry Greene, P.Geo. is a qualified person as defined by National Instrument 43 -101 and has reviewed and
approved the contents and technical disclosures in this press release. Mr. Greene is a director and officer of the
Company and owns securities of the Company.
About TRU Precious Metals Corp.
TRU (TSXV:TRU; OTCQB:TRUIF; FSE:706) is on a mission to build lo ng-term shareholder value, through
prudent natural resource property development and transactions. Currently, TRU is exploring for gold and copper
in the highly prospective Central Newfoundland Gold Belt and has an option with TSX-listed Altius Minerals to
purchase 100% of the Golden Rose Project. Golden Rose is a regional -scale 236 km2 land package, including a
newly discovered 20 km district-scale structure and an additional 45 km of strike length along the deposit-bearing
Cape Ray - Valentine Lake Shear Zone, directly between Marathon Gold’s Valentine Gold Project and Matador
Mining’s Cape Ray Gold Project.
TRU is a portfolio company of Resurgent Capital Corp. (“Resurgent”), a merchant bank providing venture capital
markets advisory services and proprietary financing. Resurgent works with promising public and pre -public
micro-capitalization companies listing on Canadian stock exchanges. For more information on Resurgent and its
portfolio companies, please visit Resurgent’s website at https://www.resurgentcapital.ca/ or follow Resurgent on
LinkedIn at https://ca.linkedin.com/company/resurgent-capital-corp.
For further information about TRU, please contact:
Joel Freudman
Co-Founder & CEO
TRU Precious Metals Corp.
Phone: 1-855-760-2TRU (2878)
Email: [email protected]
Website: www.trupreciousmetals.com
To connect with TRU via social media, below are links:
https://twitter.com/corp_tru
https://www.linkedin.com/company/tru-precious-metals-corp
YouTube
https://www.youtube.com/channel/UCHghHMDQaYgS1rDHiZIeLUg/
Acknowledgement
TRU would like to thank the Government of Newfoundland and Labrador for its past financial support through
the Junior Exploration Assistance Program.
Cautionary Statements Regarding Forward-Looking Information
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this press release relating to Quadro and the Staghorn Project ha s been compiled from publicly
available sources and has not been independently verified by TRU.
This press release contains certain forward-looking statements, including those relating to completing the Option
Agreement transaction and acquiring and exploring the Staghorn Project. These statements are based on numerous
assumptions regarding the Option Agreement transaction with Quadro that are believed by management to be
reasonable in the circumstances, and are subject to a number of risks and uncertainties, including without
limitation: mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of
mineralization hosted on the Staghorn Project and/or Golden Rose ; the exploration potential of the Staghorn
Project and/or Golden Rose; challenges in identifying, structuring, and executing transactions on favourable terms
or at all; risks inherent in mineral exploration activities; volatility in financial markets, economic conditions, and
precious metals prices; regulatory approval processes; and those othe r risks described in the Company’s
continuous disclosure documents. Actual results may differ materially from results contemplated by the forward-
looking statements herein. Investors and others should carefully consider the foregoing factors and should not
place undue reliance on such forward -looking statements. The Company does not undertake to update any
forward-looking statements herein except as required by applicable securities laws.