TRU Precious Metals (TSXV: TRU) has secured a significant partner for its Golden Rose project, which is found in the Cape Ray-Valentine Lake Shear Zone of Central Newfoundland. The company has entered into a transaction whereby Eldorado Gold (TSX: ELD) can acquire up to an 80% ownership stake for total consideration of $15.25 million.
Consideration under the option agreement will see TRU receive $8.25 million in cash and the expenditures of $7.0 million in the form of exploration on the Golden Rose project over a five year time period. TRU will continue to act as operator of the project, while a committee consisting of three Eldorado and two TRU representatives will review work programs and exploration expenditures.
“Eldorado’s expenditures under the Option Agreement will accelerate the advancement of the Project’s gold and copper potential, while the cash payments will help fund TRU’s corporate overhead as we remain operator of the Project,” commented Joel Freudman, Co-Founder and CEO of TRU, on the landmark agreement.
Under the terms of the arrangement, upon exercise Eldorado would own an 80% stake in the 100% owned mineral claims currently owned by TRU, as well as an 80% interest in TRU’s right to acquire a 65% ownership stake in certain contiguous claims. Once exercised, the two parties are expected to enter into a joint venture arrangement.
The option agreement also contains a provision for TRU to remain a beneficial owner of any non-gold and non-copper discoveries made on site.
“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 over the past year,” continued Freudman.
TRU Precious Metals last traded at $0.025 on the TSX Venture.
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