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TRU Precious Metals Corp. (TSXV: TRU) announced on Friday it has completed a non-brokered private placement for gross proceeds of approximately C$3.5 million.
Pursuant to the offering, TRU issued 12,960,186 flow-through units of the company at a price of C$0.27 per unit. Each FT unit comprises one common share of TRU and one common share purchase warrant. Each warrant is exercisable at a price of C$0.35 per share until June 17, 2024.
As previously announced, mining billionaire Eric Sprott (or a related party) participated in this financing, purchasing approximately C$2 million of the units on closing of the offering.
“I am very pleased to welcome Eric Sprott as a major shareholder of TRU. Mr. Sprott’s participation in this financing is a huge vote of confidence in the company and the potential of our district-scale land package in the Central Newfoundland gold belt,” Joel Freudman, CEO of TRU, said in a news release.
“We are also encouraged that the offering was fully subscribed by institutional investors right from the start, including funds managed by Sprott Asset Management LP, which we consider a testament to our progress to date and our prospects going forward.”
“This funding will allow TRU to proceed with an aggressive and comprehensive exploration program in summer 2021 and beyond across the company’s entire portfolio in the region,” Freudman added.
TRU currently holds five gold exploration properties in the highly prospective Central Newfoundland region, including the Golden Rose project located along the deposit-bearing Cape Ray-Valentine Lake shear zone.
The Golden Rose property lies on strike with Marathon Gold’s Valentine Lake project, on a structural corridor that transects the full length of the project.
Shares of TRU surged 11.1% by noon Toronto time following closing of the private placement. The junior gold explorer has a market capitalization of C$18.4 million.
