TRU Precious Metals Corp. (TSX-V:TRU, OTCQB:TRUIF) has announced the completion of its oversubscribed non-brokered private placement, raising gross proceeds of C$528,500 by issuing 10,570,000 company units at a price of C$0.05 each.
The gold and copper explorer said net proceeds from the offering will be used primarily for approximately 1,000 metres of test drilling of high-grade gold zones at the Mark's Pond target area at its Golden Rose project in Newfoundland as well as for corporate and public company purposes.
“Not only are we already starting fieldwork in preparation for an exciting summer drill program, but we've also commenced several internal initiatives to optimize our costs and capital structure for a more streamlined organization going forward,” TRU Precious Metals CEO Joel Freudman said in a statement.
“We're especially pleased to have secured a large investment from Resurgent Capital Corp, a founding shareholder and long-standing supporter,” he added.
Each unit of the private placement is comprised of one company common share plus one share purchase warrant, with each warrant entitling the holder to purchase one TRU Precious Metals share at a price of $0.075 for a period of 36 months following the closing date for the offering.
TRU noted that company insiders subscribed for $150,000 of the gross proceeds of the offering.
The securities issued are subject to a statutory hold period expiring September 3, 2023.
TRU Precious Metals is exploring for gold and copper in the highly prospective central Newfoundland gold belt on its 100%-owned Golden Rose project, originally optioned from Toronto Stock Exchange-listed Altius Minerals.
Contact Sean at sean@proactiveinvestors.com