TNR Gold Announces Long Term Debt Financing and Shotgun Gold Project Drill Program
VANCOUVER, British Columbia, May 31, 2012 /PRNewswire/ -- TNR Gold Corp. (the "Company") has arranged a $3,500,000 loan (the "Loan") from a private backer (the "Lender") to provide funds for the Company to conduct drilling and other exploration work on its Shotgun Gold Project located in Alaska, and provide the company with additional working capital. The Loan is due and payable on or before May 31, 2015 and is secured by a promissory note and general security agreement. The Loan will bear interest at the rate of 20% per annum. No bonus shares or commission are payable in connection with the Loan.
Objectives of the Shotgun Gold Ridge drill program include:
- Infill drilling to support a compliant NI 43-101 resource calculation;
- Test new geophysical targets identified in 2011;
- Further test at depth feeder zones discovered in 2006.
During 2011 a 3D geophysical orientation survey was conducted across Shotgun Ridge covering the area of historical drilling and extending beyond there along the ridge. The survey demonstrated that resistivity and conductivity methods are able to detect controlling structures within the ridge. This has led to the identification of new targets within Shotgun Ridge that are geophysically similar to the 210m intersection grading 1.29 g/t Au intersected in drill hole 06-43. These targets will be tested prior to the updated, compliant NI 43-101 resource calculation. Additional geophysical surveys will be conducted on prospects Shot and King to locate similar controlling structures and develop drill targets where extensive geochemical anomalies do not yet have identified bedrock sources.
"Given the current financial climate and TNR's undervalued market capitalization we are very pleased to have secured long term, non dilutive funding that will enable the Company to advance the Shotgun Gold project and return to the project generation business plan. Our present strategy is to develop TNR's existing assets to a stage that fosters strategic joint venture partnerships." - Gary Schellenberg, President.
About the Shotgun Gold Project
TNR holds a 100% interest in the Shotgun property which is located 175 kilometres south of Donlin Creek within the Kuskokwim Gold Belt in Southwestern Alaska. This area is emerging as a world-class gold district hosting more than 40 million ounces of aggregated gold resources. The Shotgun property includes a number of prospects, including Shotgun Ridge and nearby Winchester. Donlin is an intrusion-associated system and represents one of the largest undeveloped gold deposits in the world. The Company believes that there are several key similarities between prospects in the Shotgun area and that of the Donlin Creek gold deposit as well as other intrusion-associated deposits.
Previous work at Shotgun Ridge by NovaGold Resources Inc. in 1998 estimated an historical resource of 980,000 ounces grading 0.93 gram per tonne (g/t) at a cut-off of 0.5 g/t (This estimate was made prior to NI43-101 and has not been verified by a QP. It is provided for historical information and should not be relied upon).
The Loan is subject to the approval of the TSX Venture Exchange.
John Harrop, P.Geo, is the company's Qualified Person on the project as required under NI 43-101 and has reviewed the technical information contained in this press release.
Over the past twenty-one years TNR, through its lead generator business model, has been successful in generating high quality exploration projects around the globe. With the Company's expertise, resources and industry network, it is well positioned to aggressively identify, source, explore, partner and continue to expand its project portfolio.
TNR's recently listed subsidiary, International Lithium Corp. (TSX:ILC.V), demonstrated the successful application of TNR's business model in which TNR shareholders benefited from a unit distribution upon spin-out of TNR's lithium and rare metals projects. TNR remains a large shareholder in ILC at 25.5% of outstanding shares.
At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska and Argentina; and teamed with the recent acquisitions of rare-earth elements and iron ore projects in Canada confirm TNR's commitment to continued generation of in-demand projects, while diversifying its markets and building shareholder value.
On behalf of the board,
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
CUSIP: #87260X 109
SEC 12g3-2(b): Exemption #82-4434
SOURCE TNR Gold Corp.Back to top