Eldorado Gold options TRU Precious Metals’ project in Newfoundland
TRU Precious Metals Corp. [TRU-TSXV, TRUIF-OTCQB, FSE-706] said it has struck a deal with Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] that allows Eldorado to earn an 80% interest in Tru’s Golden Rose project in Newfoundland.
In order to exercise the option, Eldorado must deliver $8.25 million in staged cash payments and spend $7 million in exploration.
“We are thrilled to partner with Eldorado to advance the Golden Rose Project, which we consider a strong endorsement of the work completed since optioning the initial land package from Altius Minerals in 2021, including leveraging the support of our strategic investor Ormonde Mining Plc [ORM-AQSE] over the past year,’’ said TRU co-founder and CEO Joel Freudman.
“Eldorado’s expenditures under the option agreement will accelerate the advancement of the project’s gold and copper potential, while cash payments will help fund Tru’s corporate overhead as we remain operator of the project,’’ he said.
Golden Rose is a regional-scale 264.2 square kilometre land package, including 45 kilometres of strike length along the deposit-bearing Cape Ray – Valentine Lake Shear Zone, located directly between Calibre Mining Corp. [CXB-TSX, CXBMF-OTC] Valentine Gold Project and AuMega Metals [AUM-TSXV, AUMMF-OTCQB, AAM-ASX] Ltd.’s Cape Ray Gold project.
In addition, TRU has an option with Quadro Resources Ltd. to acquire up to a 65% interest in two claim packages covering 33.25 square kilometres, including a 12-kilometre strike length along the Shear Zone with Golden Rose. TRU is approximately 36%-owned by European strategic investor Ormonde Mining Plc. TRU is also a portfolio company of Resurgent Capital Corp., a merchant bank that provides venture capital markets advisory services and proprietary financing.
Based in Vancouver, Eldorado is a mid-tier gold and base metals producer with an international portfolio that includes mining, development and exploration projects in Turkey, Canada, Greece, Romania, and Brazil. Key operations include the Kisladag and Efemcukuru mines in Turkey, the Olympias Mine in Greece, and the Lamaque Mine in Quebec.
The option agreement, if exercised, would result in Eldorado owning 80% in each of TRU’s 100%-owned mineral claims, and gain TRU’s right to acquire up to a 65% interest in certain contiguous mining claims that are subject to an option agreement with Quadro Resources Ltd. [QRO-TSXV, QDROF-OTC Pink, G40-FSE].
Once Eldorado exercises the option, it and TRU will negotiate and enter into a joint venture agreement. If Tru’s interest in such a joint venture is diluted below 10%, its interest would convert to a 2.0% net smelter returns royalty, of which 1.0% would be repurchased by Eldorado for $5.0 million at the time of commercial production.
Details of the agreement were announced after the close of trading on July 29, 2024, when Tru shares closed at $0.025. The shares trade in a 52-week range of $0.04, and $0.02.