FREDERICTON, New Brunswick, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Trius Investments Inc. (TSXV: TRU) (“Trius” or the “Company”) is pleased to announce that it has entered into a binding letter of intent dated October 13, 2020 (the “LOI”) with GBC Grand Exploration Inc. (the “Vendor”).
Pursuant to the LOI, the Company will indirectly purchase 65 mineral claims located in Central Newfoundland known as the Twilite Gold Project (“Twilite”), along with all related permits and technical data (collectively, the “Purchased Assets”).
Twilite
Twilite consists of 65 units covering 1,625 hectares and expands the Newfoundland Gold Exploration segment of Trius’ investment portfolio (“NL Gold”), following Trius’ completed acquisition of the Gander West Property as announced on September 21, 2020, and the Toogood Arm Property acquisition as first announced on September 24, 2020, which is anticipated to close shortly.
Trius President and CEO Joel Freudman commented: “We’re excited to acquire Twilite, which nicely aligns with our previously communicated strategy of acquiring a more advanced exploration-stage asset in the Central Newfoundland Gold Belt at competitive commercial terms. Twilite has some promising historical exploration results and is in the vicinity of other large gold discoveries, which we believe bodes well for Twilite’s investment potential. This will especially be the case if we decide to commit follow-on capital to Twilite by engaging skilled consultants to carry out exploration work that can enhance Twilite’s value, whether for further development or resale.”
Twilite is considered to be associated with a low sulphidation gold system and shares many characteristics with Sokoman Minerals Corp.’s Moosehead Gold Project, which is located approximately 30 kilometres (km) northeast of Twilite. The Moosehead Gold Project has yielded promising drill hole intervals including 11.9 metres (m) of gold (Au) at 44.96 grams per tonne (g/t). (source: Sokoman Minerals Corp. website – Moosehead Gold Project page)
Twilite is also located approximately 110 kilometres (km) northeast of Marathon Gold Corporation’s Valentine Gold Project, which has one of the largest undeveloped gold resources in Atlantic Canada, including estimated proven and probable mineral reserves of 1.87 million ounces Au (from 41.05 million tonnes (t) of ore grading 1.41 g/t Au). (source: Marathon Gold Corporation website – Valentine Gold Project page)
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ddcde02b-8254-4123-8426-f31112069c83
Twilite has previously been explored but not thoroughly followed up, with the most recent notable program being carried out in 2003 by Altius Resources Inc. (“Altius”). Highlights of historical exploration including that of Fort Knox Gold Resources Inc. and Altius included:
- Discovery Prospect - selected grab samples containing visible gold returned values up to 202 g/t Au in a zone of quartz veining and silicification; channel samples returned 3.48 g/t Au and 5.3 g/t Au in a contiguous 1.0 m sample across the widest portion of the vein.
- Spring Pit Prospect – diamond drill hole TL-99-10 intersected 5.1 g/t Au over 5.8 m, from 14.2 m to 20 m depth.
Trius has not verified the historical assay results contained in this press release and is not relying on them as current mineral resources or mineral reserves. Note that grab and channel samples and drill hole results are select samples and are not necessarily representative of mineralization on Twilite. The diagrams and technical information herein relating to Twilite have been supplied by the Vendor and have not been independently verified by Trius. Readers are cautioned that these potential grades are conceptual in nature; there has been insufficient exploration by the Company or its qualified person at Twilite to define a mineral resource or mineral reserve; and it is uncertain whether further exploration will result in these targets being delineated as a mineral resource or mineral reserve.
Letter of Intent
Pursuant to the LOI, the Vendor will receive the following consideration for the Purchased Assets: (i) the issuance by Trius of 1,435,000 common shares in the capital of Trius (each, a “Trius Share”) at a deemed price of $0.25 per Trius Share; (ii) the payment by Trius’ wholly-owned subsidiary (the “Subsidiary”) to the Vendor of $100,000 cash; and (iii) the granting by the Subsidiary to the Vendor of a 1.0% net smelter returns royalty from any future mineral production at the Twilite, of which 0.5% can be repurchased by the Company for $1,000,000. Twilite is currently subject to a 2.0% net smelter returns royalty owing to prior owners, of which 1.0% can be repurchased for $1,000,000.
Further, the Vendor will be issued an additional 500,000 Trius Shares if the Company defines at least 500,000 ounces of Au or Au-equivalent in the inferred category in a mineral resource estimate for Twilite and/or claims acquired by the Purchaser within 5 km of Twilite, and a further 500,000 Trius Shares if the Company defines a further 500,000 ounces of Au or Au-equivalent in such a mineral resource estimate. All Trius Shares issuable under the LOI are subject to a hold period expiring four months and one day from the date(s) on which Trius Shares are issued.
Upon acquiring the Purchased Assets, Trius expects that any incremental investment in Twilite via exploration work will be carried out by Barry Greene, a geoscientist based in Newfoundland who has almost 30 years of experience and who is a shareholder of the Vendor. Mr. Greene has previously worked as a geological consultant, including with Amec Foster Wheeler and Wood Plc, and with numerous public companies, including approximately 16 years as Exploration Manager and then Vice-President of Exploration with Celtic Minerals Ltd.
The acquisition of the Purchased Assets remains subject to customary conditions, including that the parties enter into a definitive agreement to supersede the LOI by October 30, 2020. The transaction will be completed as soon as is practicable thereafter based on governmental claims transfer processing times, and remains subject to regulatory approval by the TSX Venture Exchange.
The Purchased Assets will be a third mineral exploration holding within NL Gold. Trius is acquiring the Purchased Assets as a passive investment, and does not intend to operate Twilite directly. However, Trius may engage third party technical and exploration consultants to advance Twilite and the Company’s other mineral property holdings so as to increase their monetization potential.
Qualified Person
Dean Fraser, P.Geo. is a qualified person as defined by the Canadian Securities Administrators’ National Instrument 43-101, and has reviewed and approved the contents and technical disclosures in this press release. Mr. Fraser is a technical advisor to the Company and owns securities of the Company.
About Trius Investments Inc.
Trius seeks unique value-creation opportunities, currently increasing its exposure to the precious metals sector by assembling a portfolio of gold exploration properties in the Central Newfoundland Gold Belt. Trius’ common shares trade on the TSXV under the symbol “TRU”.
Trius 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 Canadian companies.
For further information, please contact:
Joel Freudman
President & CEO
Trius Investments Inc.
Phone: (647) 880-6414
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 and links in this press release relating to Sokoman Minerals Corp. and Marathon Gold Corporation are from sources believed to be reliable, but that have not been independently verified by Trius. These links are included in this press release as inactive textual references for reference purposes only and the information on or connected to these websites is not part of, or incorporated by reference into, this press release.
This press release contains certain forward-looking statements, including those relating to acquiring, exploring, and monetizing Twilite and the Company’s other mineral exploration investments in Newfoundland. These statements are based on numerous assumptions regarding the Purchased Assets 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 Twilite; the exploration or monetization potential of the Purchased Assets and specifically Twilite; challenges in identifying, structuring, and executing additional investments and acquisitions, on favourable terms or at all; risks inherent in mineral exploration activities and investments in the mineral exploration sector; volatility in financial markets, economic conditions, and precious metals prices; and those other 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.