TRU Precious Metals Corp. (TSX-V:TRU, OTCQB:TRUIF) told investors it has closed a C$3 million non-brokered private placement with a subsidiary of Ormonde Mining, an Ireland-based natural resources company focused on opportunities in the mineral exploration sector.
"Closing this offering marks a game-changing inflection point for TRU,” TRU co-founder and CEO Joel Freudman said in a statement.
“We're delighted to welcome Ormonde not only as a strategic investor but also as our largest stakeholder. Ormonde's entrance into the North American resource space through TRU speaks to the intrinsic value of our Golden Rose Project, as well as the caliber of the TRU team.
Under the placement, TRU issued the Ormonde subsidiary a total of 60 million units at C$0.05 each, with each unit comprising one share and half of a purchase warrant. Each whole warrant can be exercised to acquire an additional share for C$0.075 for 36 months.
“In addition to advancing our Golden Rose Project, the funds from the offering will enable us to execute a number of strategic and corporate initiatives we've been evaluating to generate value and ultimately drive share price appreciation,” Freudman added.
“TRU is now well-capitalized amidst otherwise difficult market conditions, which we expect will lead to numerous exciting opportunities ahead.”
Board appointees
In connection with the closing of the offering, TRU noted that Ormonde has the right to appoint three out of five of the company's board of directors.
In addition to Brian Timmons who joined the board on June 30, 2023, it said Steve Nicol, a mining engineer with over 35 years of experience in the mining industry, including operations management, mine evaluation and development, and other diverse corporate roles, has been appointed to the board as Ormonde's second nominee. The final Ormonde board nominee is expected to be appointed and announced shortly, it added.
“We look forward to combining the extensive technical expertise, capital markets knowledge, and transactional experience of our Ormonde partners with our own bench strength, as we lay the groundwork to pursue and achieve our overarching mission: to build long-term shareholder value, through prudent natural resource property development and transactions,” Freudman said.
To accommodate Nicol joining the board, TRU said David Hladky has resigned as a director.
"We thank Dave for his valuable contributions as a director to the Company since 2020,” he added.
“On behalf of the board and management, I wish him the very best with his future endeavours and look forward to his continued support as a shareholder.”
Non-core property optimization updates
TRU also announced that by mutual agreement Eastern Precious Metals Corp, it will terminate the option agreement on its Twilite Gold Project. TRU has surrendered its special warrants to acquire Eastern shares, but retains 100% ownership of Twilite, a gold-bearing, drill-ready property located along the deposit-bearing Cape Ray-Valentine Lake Shear Zone, and for which Eastern has funded and completed a NI 43-101 Technical Report. TRU said it will be actively pursuing alternative transactions with the property.
Additionally, the company said it has allowed its mineral license for the Gander West Property to lapse.
TRU is exploring for gold and copper in the highly prospective Central Newfoundland Gold Belt on its wholly owned Golden Rose project.
Contact the author at stephen.gunnion@proactiveinvestors.com