TRU
PRECIOUS METALS ANNOUNCES
PRIVATE
PLACEMENT OF FLOW-THROUGH
UNITS
THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
Fredericton,
New Brunswick -- May 20, 2021 -- InvestorsHub NewsWire
-- TRU Precious Metals
Corp. (TSXV:TRU;
OTCQB:TRUIF;
FSE:706) ("TRU" or the
"Company") is pleased to announce that it intends to undertake a
non-brokered private placement for gross proceeds
of
up
to $3,500,000 (the
"Offering"), subject to TSX Venture Exchange (the "Exchange")
approval. The Offering shall
consist of up to
12,962,963
flow-through
units (the
"FT
Units") at a price of
$0.27 per
FT
Unit. TRU has been informed
that Eric
Sprott
or a
related entity intends to
purchase approximately
$2,000,000 of
the FT
Units immediately
following closing of the Offering.
Joel Freudman,
Co-Founder
&
CEO of
TRU, commented: "We are
excited to see strong
institutional
interest in financing TRU so quickly after our
resumption of trading, and look forward to
advancing the Offering to closing
as
expeditiously as possible."
Each FT Unit
will
be
comprised of one common
share
of
TRU
that qualifies as a "flow-through share" for the purposes of
the
Income Tax Act
(Canada) (a
"FT Share") and
one non-flow-through
common
share purchase warrant
(a "Warrant"). Each Warrant shall be exercisable into one
common
share
of
TRU at a price of $0.35
per common
share for a period of
36 months from the date of closing of the
Offering, currently anticipated
to occur next
week.
The completion of the Offering is subject to completion of
necessary documentation and is conditional upon receipt of the
approval of the Exchange.
The net proceeds from
the Offering will be used by the Company to fund
exploration programs on
the
Company's
mineral properties in the Central Newfoundland Gold Belt
and
other
"Canadian exploration expenses"
that qualify as
"flow-through mining expenditures", as those terms are defined in
the
Income Tax Act
(Canada), including: (i) a
comprehensive two-phase exploration program at the Golden
Rose Project; and (ii) a
limited phase one drilling program at the Twilite
Gold
Project.
The
FT
Shares
and Warrants, and any common shares
of TRU issuable upon exercise of the Warrants, will be subject to a
hold period of four
months
and one
day from
the closing
date
of the
Offering. Finder's fees may be
payable in connection with certain of the subscriptions to the
Offering. No finder's fees will
be paid to non-arm's length parties.
Other than the
Offering,
there is no new material information about the affairs of the
Company.
About
TRU
Precious Metals Corp.
TRU has
assembled a portfolio of 5 gold exploration properties in the
highly prospective Central Newfoundland Gold Belt. The Company
has an option
with a
subsidiary of TSX-listed Altius Minerals Corporation to purchase
100% of the Golden Rose Project, located along the deposit-bearing
Cape Ray – Valentine Lake Shear Zone. TRU also owns 100% of
the Twilite
Gold
Project, located along the same Shear Zone, and 3 under-explored
properties including its Rolling Pond Property (under option)
bordering New Found Gold Corp.'s high-grade Queensway Project.
TRU's common shares trade on the TSX Venture Exchange under the
symbol "TRU"; on the OTCQB Venture
Market under the symbol "TRUIF"; and on the
Frankfurt Stock Exchange under the symbol "706".
TRU 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 more information on Resurgent and its
portfolio companies, please visit Resurgent's LinkedIn profile
at
https://ca.linkedin.com/company/resurgent-capital-corp.
For
further information about TRU, please contact:
Joel
Freudman
Co-Founder, President
& CEO
TRU
Precious Metals Corp.
Phone:
(647) 880-6414
Email:
info@trupreciousmetals.com
Website:
www.trupreciousmetals.com
To connect with TRU
via social media, below are links:
Facebook
https://www.facebook.com/TRU-Precious-Metals-Corp-100919195193616
Twitter
https://twitter.com/corp_tru
LinkedIn
https://www.linkedin.com/company/tru-precious-metals-corp
YouTube
https://www.youtube.com/channel/UCHghHMDQaYgS1rDHiZIeLUg/
Cautionary
Statements
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.
This press release
contains certain forward-looking statements, including
those
relating to the
Offering
and the
anticipated closing date and use of proceeds
thereof, the
renunciation to the purchasers of the FT Units and timing thereof,
the tax treatment of the FT Units and
the
Company's plans
regarding exploring
its
mineral
exploration
properties.
These
statements are based on numerous assumptions regarding
the
Offering that are believed by
management to be reasonable in the circumstances, and are subject to a
number of risks and uncertainties, including without
limitation: risks related to the
ability of the Company to satisfy the conditions of the
Offering and
to
close the
Offering; the ability of the Company to accomplish its plans and
objectives with respect to its
exploration
projects, within the expected
timing or at all; risks inherent in
mineral exploration activities; 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.
