TRU Precious Metals Corp. (TSX.V: TRU) has simultaneously exercised three option agreements to acquire 100% ownership of the Company’s flagship Golden Rose Project, as described below (Figure 1), located in the central Newfoundland Gold Belt, which is a highly prospective gold belt.
On May 12, 2021, TRU announced that it had reached a definitive option agreement with a subsidiary of TSX-listed Altius Minerals Corporation. This agreement grants TRU the exclusive right to acquire, subject to the retention of a 2.0% net smelter return royalty by Altius, its 100% interest in a package of mineral claims located in the southwestern portion of the Central Newfoundland Gold Belt. Additionally, Shawn Rose was assigned a supplementary option agreement by TRU, granting TRU the exclusive right to acquire, again subject to the retention of a 2.0% NSR by Shawn Rose, his 100% interest in certain surrounding mineral claims known as the Rose Gold claims.
In short, TRU has the exclusive right to acquire the mineral claims located in the Central Newfoundland Gold Belt, subject to the retention of a 2.0% net smelter return royalty by Altius, as well as the right to acquire the Rose Gold claims, subject to the retention of a 2.0% NSR by Shawn Rose.
TRU has exercised its Altius Option and the accompanying Rose Option, issuing 1,400,000 common shares of TRU to Altius for $0.25 per share and paying $37,500 cash to Shawn Rose. The Company had already satisfied the other terms of the option agreements, including the requirement to incur $3,000,000 of exploration expenditures before 2024. Golden Rose was initially formed by the Altius Claims and the Rose Claims, and the size of the Company has since doubled due to other transactions.
The Company entered into an option agreement with an arm’s length individual granting TRU the exclusive right and option to acquire a 100% interest in certain claims along the shoreline of King George IV Lake, which are contiguous with Golden Rose. To exercise the option, TRU issued 100,000 TRU Shares at a deemed price of $0.08 per share as well as 500,000 TRU Shares at a deemed price of $0.08 per share in shares for debt transaction in satisfaction of a $40,000 cash-or-shares payment obligation, which was due to be made by July 13, 2023. The option or retain a 2.0% NSR.