REG - Ormonde Mining PLC - Investment in TRU Precious Metals Corp.

Ormonde MiningAnnouncement

30/06/2023 18:30

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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
(http://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
(http://www.trupreciousmetals.com) .

 

 

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