True North Gems Inc., a junior exploration company dedicated to the exploration and development of coloured gemstone deposits, has secured C$800,000 from Nuuk, Greenland-based private equity firm Greenland Venture A/S. The funds will be used by the Vancouver-based True North Gems for working capital and to facilitate public hearings and other Greenlandic matters during the final stages of permitting the Aappaluttoq Ruby Project.
True North Gems Inc. (TSX VENTURE:TGX) (“True North” or the “Company”) announces it has entered into a financial agreement with Greenland Venture A/S (“Greenland Venture”), the largest private equity fund in Greenland. Greenland Venture will invest a total of 4.5 million DKK (equivalent to approximately $800,000 CDN) with True North’s wholly owned Greenlandic subsidiary True North Gems Greenland A/S (“TNGG”). These funds will be utilized for general working capital and will also facilitate the public hearings and other Greenlandic matters during the final stages of permitting for the Aappaluttoq Ruby Project.
The funding comprises a 500,000 DKK equity component with TNGG and a 4 million DKK commercial loan bearing 10% annual interest. The equity will be issued to Greenland Venture as class B voting shares of TNGG. Greenland Venture will also have the right to appoint a representative on the Board of Directors of TNGG. The loan has a term of 60 months, with repayment guaranteed by True North.
“Greenland Venture realise the potential offered by the burgeoning Greenlandic mining industry while seeking to endorse their belief in Greenlandic operations and development,” stated True North Gems President and CEO Nick Houghton.
Greenland Venture A/S specializes in providing venture finance to companies operating in Greenland. Greenland Venture is a subsidiary of Greenland Holding, A/S, a private equity company. The fund’s investment strategy is primarily aimed at small and medium-sized enterprises in Greenland, or companies that otherwise have a general interest in the development of Greenlandic society. The enterprise must have commercially viable activities that directly or indirectly create added value for Greenland through import/export, production or services.
“Our mandate is to invest in the development of Greenland; we see this as the perfect opportunity to show our confidence in the country, the potential of its mining industry and in the Aappaluttoq Ruby Project,” commented Karsten Hoy, CEO of Greenland Venture.
This transaction is subject to TSX Venture Exchange approval.
This document contains “forward-looking information” and “forward-looking statements” (together, “forward-looking statements”) within the meaning of applicable securities legislation, which are made as of the date of this document or the document(s) referred to herein. Statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements include, without limitation, statements with respect to: the amount of mineral reserves and mineral resources; the amount of future production over any period; net present value and internal rates of return of the proposed mining operation; capital costs; operating costs; strip ratios and mining rates; and mine life. The forward-looking statements are made based upon certain assumptions which, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by the forward-looking statements. These assumptions include, without limitation: the price of gemstone products produced; anticipated costs; the presence of and continuity of gemstones at modeled grades and values; the capacities of various machinery and equipment; the availability of personnel, machinery and equipment at estimated prices; exchange rates; appropriate discount rates; tax rates applicable to the proposed mining operation; financing structure and costs; anticipated mining losses and dilution; gemstone recovery rates; reasonable contingency requirements; and receipt of regulatory approvals on acceptable terms. By their very nature, forward-looking statements involve inherent risks and uncertainties that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements. These include, without limitation: price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks, regulatory restrictions (including environmental regulatory restrictions and liability), activities by governmental authorities (including changes in taxation), currency fluctuations, the speculative nature of gemstone exploration, the global economic climate, dilution, share price volatility, competition, loss of key employees; additional funding requirements and defective title to mineral claims or property]. This list is not exhaustive. See also, for example, the risks disclosed in the Company’s other disclosure documents filed at www.sedar.com, including, without limitation, those disclosed in the Company’s management’s discussion & analysis. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, except as otherwise required by applicable securities legislation.
True North Gems Inc.
President and CEO
604-687-8055 or 1-800-399-8055
True North Gems Inc.
Photo courtesy of Shutterstock.