TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) said on Wednesday it has received conditional approval from the TSX Venture Exchange to proceed with a strategic private placement by Altius Resources, a subsidiary of Altius Minerals as part of a previously announced investment agreement.
The company said the private placement is expected to close no earlier than five trading days from the date of the announcement. Under the deal, TNR will issue 23.5 million common shares to Altius Resources for gross proceeds of $4.17 million.
Proceeds from the placement will be used to fund potential corporate development initiatives, property maintenance, and exploration at the company’s Shotgun Gold Project in Alaska, as well as potential royalty acquisitions and general working capital needs.
“We are delighted to welcome Altius as a strategic, non-controlling investor in TNR Gold,” executive chairman Kirill Klip said in a statement. “This investment enables TNR Gold to advance the execution of its strategic plan and reflects strong market recognition of the quality of our assets and their potential.”
Klip said the company’s business model is focused on building exposure to energy metals such as copper and lithium, alongside gold, through a mix of exploration and royalty interests.
Altius said the investment aligns with its approach of taking minority equity stakes in companies with royalty exposure to large-scale mineral projects, highlighting TNR’s exposure to assets including the Los Azules copper project and the Mariana lithium brine project in Argentina.
Following completion, TNR and Altius will enter into a right of first offer agreement covering TNR’s royalties on the Mariana and Los Azules projects, as well as a voting agreement designed to allow Altius to maintain its proportional ownership and support management-backed board nominees for up to five years.
The agreement will automatically terminate if Altius Resources’ stake falls below 6% of TNR’s outstanding shares, TNR said.