Tri Origin Appoints Steve Dawson as Vice President Corporate Development, initiates Debt Resettlement and is Defining Targets on Two Key Gold Projects
May 28, 2020
Aurora, Ontario – Tri Origin Exploration Ltd. (TSX-V: TOE) (the “Company”) is pleased to provide an update on corporate and market activities.
Tri Origin has appointed consultant Steve Dawson to the management team as Vice President Corporate Development. His primary focus will be to assist with evaluating corporate financial and strategic business opportunities for the Company. This appointment will greatly assist management in its continuing efforts to enhance shareholder value and to improve market awareness and financial support for the Company.
Steve has more than 30 years of experience in the mining industry as an exploration geologist, journalist and in investor relations. For the past 25 years, Steve has focused on creating and implementing successful investor relations programs for gold and base metal companies in the junior mining sector including Bolivar Goldfields Ltd., Campbell Resources Inc., Rio Narcea Gold Mines, Ltd. and most recently, NorZinc Ltd.
Over the past few months Tri Origin has been positioning itself for an aggressive resumption of exploration activities. As part of this process, the Company announces that it has reached an agreement (the “Debt Settlement”) with an officer of the Company (the “Creditor”) to settle an aggregate of $143,890 in debt owed by the Company to the Creditor in respect of operating expenses, rent arears, management fees and interest on the Creditor’s loan to the Company for the period from the beginning of January 2019 to end of May of 2020 (the “Indebtedness”). The Creditor has agreed to convert the indebtedness into common shares of the Company (“Common Shares”) at a price of $0.0225 per Common Share, subject to receipt of the approval from the TSX Venture Exchange.
It is expected that, upon the completion of the Debt Settlement, subject to receipt of the requisite approvals, the Company will issue 6,395,102 Common Shares to the Creditor. Any securities issued in connection with the Debt Settlement will be issued in reliance on certain prospectus and registration exemptions under applicable securities legislation and will be subject to a hold period of four months and a day.
At its key gold projects the Company is currently finalizing data reviews and interpretations to target diamond drilling programs to commence as conditions permit.
The Sky Lake Project, situated 310 km north of Thunder Bay, ON, includes mining and patented claims covering 127 km2 southwest of the past-producing Pickle Lake Gold District which has recorded past production and known resources of over 3.5 million ounces of gold. Sky Lake is underlain by a 27 km long prospective gold trend that hosts the historic Koval gold deposit that was discovered and partially delineated in the 1950’s. A non-compliant gold resource was calculated in the 1980’s that requires drilling to confirm and expand the extent of the mineralization.
Other than that by Tri Origin, no exploration has been completed in the area for the past 35 years. Tri Origin has completed compilation and modelling of all data from the historic drilling at Koval and has spent over $1.5 million to delineate new targets near the Koval deposit through geological, geophysical and geochemical surveying. This new work included 15 line kilometres of “deep-looking” induced polarization surveys that returned strong responses at the deposit highlighting promising new drill targets.
The North Abitibi Project comprises 50 km2 of claims in northeastern Ontario along the Casa Berardi Break which hosts six current and past-producing mines in Quebec representing over 3 million oz. of gold production to date. The primary targets at North Abitibi include two previously discovered gold zones, the Spade Lake and Road zones that have returned multiple high-grade assays for over 3 kilometres along trend. These zones remain open along strike and at depth and historic drill intersections have only tested them to a depth 150 metres below surface. Additional drilling elsewhere on the property has intersected numerous gold values throughout the 10 kilometre long property.
Historic drilling at North Abitibi totals 29,600 metres in 139 holes and millions of dollars of exploration data has been compiled; however little work has occurred in the region over the past 30 years. Tri Origin has expended over $1.6 million to delineate new targets and depth extensions of the as yet, sub-economic gold zones. In 2019 three drill holes were completed to confirm IP anomaly interpretation, all of which intersected pyritic gold mineralization. Deeper drilling is now required to test targeted gold zones below preliminary drilling.
For information about Tri Origin, please contact: Dr. Robert Valliant, President, (905) 727-1779; Steve Dawson, (647) 998-9495; E-mail: firstname.lastname@example.org or visit www.triorigin.com, SEDAR www.sedar.com.
Tri Origin Exploration Ltd. is publicly listed on the TSX Venture Exchange under the trading symbol TOE. Tri Origin is a leading Canadian exploration company with gold and base metal projects in Canada.
Related Party Transactions: Under the proposed Debt Settlement, the issuance of Common Shares to the Creditor who is an insider of the Company will be considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on an exemption from the formal valuation requirements of MI 61-101 available on the basis of the Company not being listed on a specified stock exchange, including the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ and certain overseas exchanges. The Company also intends to rely on the exemption from minority shareholder approval requirements under MI 61-101, as the fair market value of the Common Shares to be issued to the Creditor under the proposed Debt Settlement does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
Cautionary Statement: Neither 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.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Tri Origin's periodic reports including the annual report or in the filings made by Tri Origin from time to time with securities regulatory authorities.
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, completion of the Consolidation and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify beneficial business opportunities, failure to convert the potential in the pursued business opportunities to tangible benefits to the Company or its shareholders, the ability of the Company to counteract the potential impact of the COVID-19 coronavirus on factors relevant to the Company’s business, delays in obtaining or failures to obtain required shareholder and TSX Venture Exchange approvals, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.