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17/06/2024
Mining News

TRU Precious Metals gains new investor in Ireland’s Ormonde Mining

TRU Precious Metals has announced a proposed $3 million investment from a subsidiary of Ormonde Mining, an Ireland-based natural resources company focused on new opportunities in the mineral exploration sector.

The proceeds of the offering will be used for the development of TRU’s Golden Rose project in Newfoundland and for general corporate and working capital purposes, the company said.

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Ormonde Mining is an Irish junior mining company which is developing mining projects and carrying out exploration in Spain.

TRU CEO Joel Freudman noted that the proposed investment would mark Ormonde’s first foray into mineral exploration in North America and said it cemented that the company was on the right path to value-creation ahead.

“We’re confident Ormonde will become an increasingly important partner of TRU, as we draw on their extensive technical expertise, successful transactional experience in the resource sector, and general capital markets savvy as we continue our efforts to develop our Golden Rose project in central Newfoundland,” Freudman said in a statement.

For the offering, TRU will issue 60 million units at a price of C$0.05 per unit.

Each unit is comprised of one share and one-half of a share purchase warrant, with each whole warrant entitling the holder to purchase one share at a price of $0.075 for 36 months following the closing date of the offering.

Assuming no other share insurance by TRU, upon closing Ormonde would own about 36.19% of the company’s shares, or 45.97% on a partially diluted basis if Ormonde were to exercise all the warrants issued under the offering.

The offering is subject to Ormonde obtaining shareholder approval and delisting from both the LSE Alternative Investment Market (AIM) and Euronext Growth. TRU is also required to gain shareholder and TSX Venture Exchange approval.

To demonstrate the parties’ commitment to completing the offering, TRU has appointed the chairman of the board of directors at Ormonde Brian Timmons to its board.

Timmons brings more than 30 years of experience in senior positions within financial institutions across a range of sectors, including alternative energy, natural resource, healthcare technology, bioscience, and software IT, TRU said.

TRU director Barry Greene has resigned to accommodate Timmons on the board.

TRU is exploring for gold and copper in the highly prospective Central Newfoundland Gold Belt on its 100%-owned Golden Rose project.

 

Source: proactive

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