Trius Expands Newfoundland Exploration Package
FREDERICTON, New Brunswick, Sept. 24, 2020 (GLOBE NEWSWIRE) — Trius Investments Inc. (TSXV: TRU) (“Trius” or the “Company”) is pleased to announce that its wholly-owned subsidiary (the “Subsidiary”) has entered into a mineral property acquisition agreement (the “Purchase Agreement”) with five arm’s length individual vendors (collectively, the “Vendors”), including several members of the Stares family which received the Prospectors and Developers Association of Canada’s Bill Dennis Prospector of the Year Award in 2007.
Pursuant to the Purchase Agreement, the Company will indirectly purchase 7 exploration-stage mineral claims located in Toogood Arm in Newfoundland (the “Toogood Arm Property”), along with all related permits and technical data (collectively, the “Purchased Assets”).Toogood Arm Property
The Toogood Arm Property consists of 247 units covering 6,175 hectares and expands Trius’ Newfoundland land package, following Trius’ acquisition of the Gander West Property as announced on September 21, 2020.The Toogood Arm Property is largely unexplored. At the Wild Cove claims which form part of the Toogood Arm Property, historical grab samples from the massive, banded sulphides within Zone 1 returned assay values up to 25.0% zinc (Zn), 2.4% copper (Cu), 86 g/t silver (Ag) and 1.9 g/t Au, and grab samples of stringer mineralization returned values up to 9.1% Zn, 1.8% Cu, 2.51 oz/t Ag and 1.9 g/t Au. An average value based on 10 selected samples from Zone 1, including massive, semi-massive, stringer and disseminated mineralization, is 11.91% Zn and 1.33% Cu. Historical diamond drill hole WC-96-01 was collared in Zone 1 mineralization and returned an average assay value of 5.7% Zn, 1.2% Cu, 40 g/t Ag and 1.0 g/t Au over an interval of 4.0 meters. (Reference National Mineral Inventory Number: 002E/10/Cu 004, Record ID Number: 264)Note that grab samples and drill hole results are select samples and are not necessarily representative of mineralization on the Toogood Arm Property. The diagrams and technical information herein relating to the Toogood Arm Property have been supplied by the Vendors and have not been independently verified by Trius.Joel Freudman, President and CEO of Trius, said, “We continue to invest in Trius’ Newfoundland land package, following the major gold discovery in the region by New Found Gold, and are thrilled to do it by partnering with the renowned Stares family. The Toogood Arm Property is under-explored, yet still has enough historical work to serve as a strong starting point for advancement.”Purchase Agreement
Pursuant to the Purchase Agreement, the Vendors will receive the following consideration for the Purchased Assets: (i) the issuance by Trius of an aggregate of 6,000,000 common shares in the capital of Trius (each, a “Trius Share”) at a deemed price of $0.20 per Trius Share; and (ii) the granting by the Subsidiary to the Vendors of a 2.0% net smelter returns royalty from any future mineral production at the Toogood Arm Property, of which 1.0% can be repurchased by the Company for $1,000,000. Trius will also reimburse the Vendors’ non-material staking costs.Further, the Vendors will be issued up to an additional 500,000 Trius Shares if the Company defines at least 500,000 ounces of gold equivalent at the Toogood Arm Property in a technical report prepared in accordance with National Instrument 43-101, and a further 1,000,000 Trius Shares if the Company defines a further 500,000 ounces of gold equivalent in such a technical report. All Trius Shares issuable under the Purchase Agreement are subject to a hold period expiring four months and one day from the date(s) on which Trius Shares are issued.The acquisition of the Purchased Assets will be completed as soon as is practicable based on governmental claims transfer processing times, and remains subject to regulatory approval by the TSX Venture Exchange.The Purchased Assets will be a second novel, direct mineral exploration holding within the Company’s broader investment portfolio. Trius is acquiring the Purchased Assets as a passive investment, and does not intend to operate the Toogood Arm Property directly. However, Trius may engage third party technical and exploration consultants to advance its mineral property holdings so as to increase their monetization potential.The Company has recently become aware that another public company has acquired the mineral claims adjacent to and to the west of Trius’ Gander West Property, evidencing demand for mineral exploration assets in the region.Mr. Freudman added, “We think our growing collection of exploration investments in Newfoundland will give our portfolio exploration and monetization potential, which could ultimately deliver returns for our shareholders. We remain on the lookout for other prospective Newfoundland assets, especially those sourced from seasoned geological teams and that we can acquire at reasonable prices.”Qualified Person and National Instrument 43-101 Disclosures
Dean Fraser, P.Geo. is a qualified person as defined by the Canadian Securities Administrators’ National Instrument 43-101, and has reviewed and approved the contents and technical disclosures in this press release. Mr. Fraser is a technical advisor to the Company and owns securities of the Company.About Trius Investments Inc.
Trius is an investment issuer increasing its exposure to the precious metals sector through a variety of novel investment structures, including acquiring gold exploration properties in Newfoundland. Trius’ common shares trade on the TSXV under the symbol “TRU”.Trius is a portfolio company of Resurgent Capital Corp. (“Resurgent”), a merchant bank providing venture capital markets advisory services and proprietary financing. Resurgent works with promising public and pre-public micro-capitalization Canadian companies.For further information, please contact:
President & CEO
Trius Investments Inc.
Phone: (647) 880-6414Cautionary Statements Regarding Forward-Looking InformationNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.This press release contains certain forward-looking statements, including those relating to acquiring, exploring, and monetizing the Toogood Arm Property and the Company’s other exploration investments in Newfoundland, and acquiring other mineral exploration investments. These statements are based on numerous assumptions regarding the Purchased Assets that are believed by management to be reasonable in the circumstances, and are subject to a number of risks and uncertainties, including without limitation: mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s properties; the exploration or monetization potential of the Purchased Assets and specifically the Toogood Arm Property; challenges in identifying, structuring, and executing additional investments and acquisitions, on favourable terms or at all; risks inherent in mineral exploration activities and investments in the mineral exploration sector; volatility in financial markets, economic conditions, and precious metals prices; and those other risks described in the Company’s continuous disclosure documents. Actual results may differ materially from results contemplated by the forward-looking statements herein. Investors and others should carefully consider the foregoing factors and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements herein except as required by applicable securities laws.A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/81a904c8-ce2e-4311-a732-dcaf982d39c1