TIDMORM
RNS Number : 6384E
Ormonde Mining PLC
30 June 2023
This announcement contains inside information
30 June 2023
Ormonde Mining plc
("Ormonde" or the "Company")
Investment in Listed Canadian Exploration Company with
Flagship Newfoundland Gold Project
Ormonde is pleased to announce a proposed substantial investment
in Toronto-listed exploration company TRU Precious Metals Corp.
("TRU"), which is exploring for gold and copper in the highly
prospective Central Newfoundland Gold Belt in Canada.
Highlights
-- Ormonde to acquire an initial 36.2% controlling interest in
TRU's share capital through a private subscription for 60 million
new common shares of TRU at CAD $0.05 per share for a total
consideration of CAD $3,000,000 (the "Subscription")
o Potential to increase shareholding to up to 46.0% through the
exercise of warrants
-- Ormonde to appoint three directors to the TRU Board of Directors
-- TRU's flagship Golden Rose Project ("Golden Rose") is in the
highly prospective Cape Ray - Valentine Lake gold-bearing
structural corridor in Southern Central Newfoundland
-- Golden Rose is a regional-scale 273.5 km(2) land package, of
which 240.25km(2) is fully owned with the additional 33.25 km(2)
held under an option to acquire a 65% interest
o The coherent land package straddles a 45km strike length held
along the deposit-bearing Cape Ray-Valentine Lake shear zone, and
is located between Marathon Gold's Valentine Gold Project and
Matador Mining's Cape Ray Gold Project
-- Ormonde's investment will be used to fast-track the
advancement of Golden Rose as well as the evaluation of other
mineral property transaction opportunities
-- The Subscription is subject to Ormonde shareholder approval as referred to below
Background
After undertaking considerable due diligence and reviewing
numerous opportunities over the past 18 months, the Company has
agreed to invest in TRU, a natural resources company listed on the
TSX Venture Exchange in Toronto (TSXV). Ormonde's initial
investment provides the Company with a 36.2% equity interest in
TRU, providing Ormonde's shareholders with exposure to a highly
prospective new gold and copper exploration region in Newfoundland,
Canada.
In addition to the proposed Subscription, each new common share
will have a 0.5 share purchase warrant attached, with each full
warrant being exercisable to acquire one new common share in TRU at
a price of CAD $0.075 for a period of 36 months following the
closing date. The exercise of this option in full would increase
Ormonde's equity holding in TRU to 46.0%.
TRU
TRU Precious Metals Corp (TSXV:TRU, OTCQB:TRUIF) is a TSXV
listed corporation with the stated mission of building long-term
shareholder value, through prudent natural resource property
development and transactions.
TRU is led by Joel Freudman, a mining M&A specialist, who is
supported by a team which combines geological exploration and
mining transaction experience. Brian Timmons, Ormonde Chairman,
will join TRU's Board of Directors immediately, with two further
Ormonde nominees to join the five-strong Board, upon closing of the
transaction.
Golden Rose Project
At Golden Rose, TRU has consolidated a significant land position
covering 273.5 km(2) , of which 240.25km(2) is fully owned with the
additional 33.25 km(2) held under an option to acquire a 65%
interest. Golden Rose is located in the prospective Valentine Lake
gold bearing structural corridor in Southern Central Newfoundland.
TRU's landholding is bounded by projects with code compliant
resource estimates. Marathon Gold's Valentine Project to the
northeast has approximately 4 million ounces in Measured and
Indicated Resources, and Matador Mining's Cape Ray Project to the
southwest has approximately 0.8 million ounces in Indicated and
Inferred Resources with further exploration continuing.
Modern exploration for gold in Newfoundland has only been
possible since the 1990s due to earlier complications affecting
access to land for exploration. However, following recent
significant discoveries, Newfoundland has become one of the world's
most attractive gold exploration regions. Recent exploration
projects have yielded promising discoveries of gold, copper and
lithium. The highly prospective geology combined with ease of
access, a supportive local government and moderate weather combine
to give Newfoundland a top 10 global ranking for mining investment
attractiveness by the Fraser Institute.
The TRU landholding at Golden Rose has had limited historical
exploration, but it has confirmed the prospectivity of the area.
TRU has capitalised on the previous work and is already turning up
new high-grade gold and copper mineralised targets on the property
with high grades similar to those that other Newfoundland explorers
have been reporting in recent years. These include:
-- At Mark's Pond, where TRU has recently obtained high-grade
results from trench channel sampling at a new gold occurrence
including:
o 2.5m grading 57.6 g/t Au including 1m grading 141 g/t Au
o 2.0m grading 34.0 g/t Au including 1m grading 65.4 g/t Au
o 2.0m grading 23.5 g/t Au including 0.5m grading 90 g/t Au
-- At Jacob's Twin, where recent drilling discovered new
high-grade copper and gold mineralisation with results including a
1.1m intercept, grading as follows:
o Copper: 2.2%
o Gold:1.4 g/t
o Silver: 108.3 g/t
Numerous other significant occurrences of gold in bedrock occur
within the TRU land holding which will be advanced as part of the
planned investment.
The Board believes Golden Rose represents an exceptional gold
exploration asset with the potential to contain one or more
world-class gold resources. Within the TRU landholding, various
mineralisation styles have already been recognised, including a
structural domain potentially similar to the Curraghinalt gold
deposit in Northern Ireland, a deposit which contains 6 million
ounces in Measured, Indicated and Inferred Resources. The Board
consequently believes Golden Rose is capable of generating
significant value to the Company and its shareholders.
The Board also believes that the closer collaboration between
the Ormonde technical advisory team, with its over 70 years of
combined experience, and TRU's leadership, with its strong
transactional background and in-house exploration team, is a
logical fit that will result in the identification of further
mineral asset opportunities.
Suspension of Listing
Ormonde became an AIM Rule 15 cash shell in October 2022 and is
therefore required to make an acquisition or acquisitions
constituting a reverse takeover ("RTO") under AIM Rule 14 and the
Euronext Growth Market rules on, or before, the dates falling six
and twelve months respectively from 3 October 2022.
Following Ormonde's acquisition of a 20% interest in Peak Nickel
Limited, as announced on 7 February 2023, the Company's ordinary
shares have been suspended from trading on AIM and Euronext Growth
Market. As Ormonde is a cash shell, the Subscription for shares in
TRU is also deemed to be an RTO under AIM Rules and Euronext Growth
Rules and as such trading in the Company's shares will remain
suspended until an AIM admission document and a Euronext Growth
information document are published.
As TRU is already listed in Canada, the Ormonde Board has
decided, subject to shareholder approval, to seek to cancel the
Company's admission to trading on AIM and Euronext Growth Market as
part of the approval process around this Subscription (the
"Cancellation"). An announcement setting out the reasons for the
proposed Cancellation, the effect of the proposed Cancellation, and
a detailed timetable will be released when finalised. A circular
will be prepared and sent to shareholders in due course with a
notice convening an Extraordinary General Meeting ("EGM") to
approve the Subscription and the Cancellation of the Company's
shares to trading on AIM and Euronext Growth Market. The
Subscription is conditional on shareholder approval and the
completion of the Cancellation.
Brendan McMorrow, Chief Executive Officer, commented:
"We are very excited about the geological prospectivity of the
Golden Rose Project, and the future opportunities that a combined
TRU and Ormonde could uncover. The proposed investment in TRU, if
approved, together with the existing investment in Peak Nickel,
provide Ormonde's shareholders with exposure to quality and diverse
assets across a range of strategic minerals in Tier 1
jurisdictions, thereby positioning the Company for significant
value creation in the short-to-medium term."
Enquiries:
Ormonde Mining plc
Brian Timmons, Chairman
Tel: +353 (0)1 801 4184
Vigo Consulting (Investor Relations)
Ben Simons / Charlie Neish
Tel: 44 (0)20 7390 0230
Davy (Nomad, Euronext Growth Listing Sponsor and Broker)
Anthony Farrell
Tel: +353 (0)1 679 6363
About Ormonde Mining
Ormonde is focussed on the evaluation and execution of new
opportunities through which the Company can leverage its balance
sheet to generate shareholder value whilst placing a strong
emphasis on cash preservation.
Currently, Ormonde has a 20% interest in Peak Nickel Limited, a
private UK company which is advancing exploration on a potentially
significant battery metals project.
Ormonde's shares are listed on the London Stock Exchange (AIM)
and the Euronext Growth Market in Dublin.
For more information, visit the Company's website at
www.ormondemining.com .
About TRU
TRU Precious Metals Corp (TSXV:TRU, OTCQB:TRUIF) is a TSXV
listed corporation with the stated mission of building long-term
shareholder value, through prudent natural resource property
development and transactions. TRU is exploring for gold and copper
in the highly prospective Central Newfoundland Gold Belt on its
273.5 km2 Golden Rose Project.
For more information, visit the Company's website at
www.trupreciousmetals.com .
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MSCZZGFVNGDGFZM
(END) Dow Jones Newswires
June 30, 2023 13:27 ET (17:27 GMT)
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