VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 28, 2013) - True North Gems Inc. (TSX VENTURE:TGX) ("True North" or the "Company") announces it has entered into an agreement to sell its 100% interest in 43 mineral claims located in the Finlayson District of the Yukon Territories to Pacific Ridge Exploration Ltd. The claims are located in proximity to Pacific Ridge''s Fyre Lake Kona copper-gold-cobalt massive sulphide deposit.
Under the terms of the agreement Pacific Ridge has the option to earn a 100% interest in the claims with an initial payment to True North of $15,000 plus 250,000 Pacific Ridge shares on closing of the transaction, and an additional $10,000 and 150,000 shares on or before January 31, 2014. The agreement is not subject to any underlying royalty interests.
True North President and CEO Nick Houghton said: "This transaction is consistent with our strategy to divest of non-core assets and focus on development of the Aappaluttoq ruby project in Greenland."
The 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.