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| April 03, 2014 --- Vol. 08, No. 14 | April 2014
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Greenland
GEMSTONES – True North Gems Inc. April 2 said it is moving ahead with plans to develop the Aappaluttoq ruby project in Greenland, after signing a joint venture agreement recently with LNS Greenland A/S, which will bring a major portion of the capital expenditures required, $23 million of commitment in infrastructure, engineering and building. The deal also brings a strong partner with extensive knowledge of Arctic mining and construction to the project. In a letter to shareholders. True North Gems President Nicholas Houghton said, “Most importantly,” this agreement and the 80-20 percent JV agreement between the two companies provides the project with an operator who now has pride in the success of the operation, who benefits from the surgical extraction of the gemstones from the ore and who stands to gain more from precise mining as opposed to volume mining, the company said. “These are extremely important factors to take into consideration when our commodity is highly valuable rubies and pink sapphires,” Houghton said. He also noted that True North Gems’ share price took a beating recently in the market because one of the company’s larger shareholders chose to liquidate shares when news that the company had been granted a 30-year exploitation permit was announced, and thereby, triggered a secondary wave of selling. “We took some lick, I know, and it hurt, to put it mildly, but it was the paper value of the company that took a hit, not the fundamentals that it was built on; these are intact and stronger than ever,” Houghton said.“Through our exploration and delineation our geologists have a far greater understanding of the complexity of the deposit. We can look at the potential of expansion, not only at the Aappaluttoq deposit but also possible secondary targets that will strengthen our supply and bring more value to the company. This expansion can be done in a controlled manner and achieved from future cash flow without the need for dilution to support the costs,” he added.
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