By Robb M. Stewart
Canadian gold and copper explorer TRU Precious Metals has struck a deal to secure funding for the development of its Golden Rose project in Newfoundland that will see Irish natural-resources company Ormonde Mining become a significant shareholder.
TRU said Tuesday it has agreed to issue 60 million units of the company to raise 3 million Canadian dollars ($2.3 million), with each unit comprising one share and half a share-purchase warrant.
When the private placement is completed, Ormonde will own about 36% of TRU’s issued and outstanding shares, or almost 46% if all the warrants are exercised, TRU said. Ormonde also would have the right to nominate three of five nominees to TRU’s board.
TRU said Barry Greene has resigned as a director, and Ormonde Chairman Brian Timmons has been appointed to its board.
The agreement will require approval from TRU’s shareholders and is subject to Ormonde gaining shareholder approval and delisting from both London’s Alternative Investment Market and Euronext Growth, TRU said.
TRU’s shares have fallen 53% so far this year, and are down 65% over the last 12 months.
Write to Robb M. Stewart at [email protected]
Read the full article here
