Ormonde Mining plc plans a 36.2% controlling investment, with an option for a further 10%, in a Canadian explorer of a gold-copper asset with “world-class” potential in Newfoundland.
CAPITAL
The company said that the acquisition, subject to Ormonde shareholder approval, is via a private subscription for 60 million new common shares of TRU Precious Metals Corp, at C$0.05 per share for a total C$3 million.
Each new common share will have a 0.5 share purchase warrant attached, with each full warrant exercisable to acquire one new common share in TRU at a price of C$0.075 for a period of 36 months following the closing date.
The exercise of the option in full would increase Ormonde’s equity holding in TRU to 46%.
Ormonde’s investment will be used to fast-track TRU’s Golden Rose project as well as evaluate other mineral property opportunities.
The Irish company currently receives in tranches a total €2.3 million (£2m) from the October 2022 sale of La Zarza gold legacy in Spain.
Earlier this year, it invested a total £512,500 in Peak Nickel Ltd although has yet to report any exploration activities. Ormonde chairman also became a director in the Sheffield-based company.
Ormonde’s financial results for 2022 showed a loss of €1.1m (2021: loss of €1.6m) with net assets of €4.9m and cash of €3.56m.
The deal would also see the company, currently a cash shell, leave the United Kingdom and Ireland stock exchanges.
Investor Thomas Anderson holds 24.41% of the shares in Ormonde.
GOLDEN ROSE
Toronto-listed TRU’s flagship Golden Rose project is in the Cape Ray – Valentine Lake gold-bearing structural corridor in southern central Newfoundland
The project covers 273.5km2, of which 240.25km2 is fully owned, with 33.25km2 held under an option to acquire a 65% interest.
Ormonde said that the coherent land package straddles a 45km strike length held along the deposit-bearing Cape Ray-Valentine Lake shear zone, and lies between Marathon Gold’s Valentine gold project and Matador Mining’s Cape Ray gold project.
TRU’s gold and copper mineralised targets on Golden Rose include Mark’s Pond and Jacob’s Twin.
At the former, trench channel sampling at a new gold occurrence showed 2.5m grading 57.6 g/t Au including 1m grading 141 g/t Au.
At Jacob’s Twin, recent drilling discovered new high-grade copper and gold mineralisation with results including a 1.1m intercept, grading as copper 2.2%, gold1.4 g/t and silver 108.3 g/t.
“The board believes Golden Rose represents an exceptional gold exploration asset with the potential to contain one or more world-class gold resources,” said Ormonde in a statement.
“Various mineralisation styles” include a structural domain “potentially similar to the Curraghinalt gold deposit in Northern Ireland”.
VALUE
The transaction would also see Ormonde chairman Brian Timmons and two further Ormonde nominees join the five-strong board.
“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,” added chief executive officer Brendan Mcmorrow.
“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.”
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