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True Gold Draws Additional $14 Million Financing, Provides Karma Mine Construction Update

True Gold Mining Inc. is pleased to report that the Company has drawn down an additional $14 million of the $100 million financing from Franco-Nevada (Barbados) Corporation and Sandstorm Gold Bank Ltd. This is the third draw down that True Gold has made under the facility, bringing the total amount drawn to $71.6 million.

The Company currently has approximately $37.5 million in cash. Construction remains on schedule with the planned placing of ore on the heap leach pads in early 2016 and first gold pour anticipated for the end of Q1-2016.

Christian Milau, President and CEO of True Gold stated, "There is an atmosphere of excitement on site with a workforce of over 500 focusing on earthworks and the processing plant final assembly. We have progressed rapidly with site development and construction, highlighted by commissioning of the mine fleet, completion of the raw water pond excavation and initial construction of the raw water pipeline."

Construction Update:

The Karma mine is in full construction with all required personnel on site. Highlights since the last project update (see news release dated June 17, 2015) include:

  • Excavation of raw water pond completed
  • Burying of the barrage raw water pipeline commenced
  • Water pipeline from barrage to site 20% complete
  • Excavation of storm water pond commenced
  • Excavation of Pregnant Leach Solution (PLS) pond commenced
  • Stripping of Cell 1 of heap leach pad completed
  • Mine fleet commissioned (six Komatsu 785 trucks, PC 3000 excavator, WA800 loader)
  • Assembly of hard rock crusher has commenced
  • Assembly of Absorption, Desorption and Refining (ADR) plant structural steel has commenced

Planned infrastructure activities upon delivery at site:

  • Assembly of assay lab
  • Assembly of gold room structural steel
  • Assembly of the cement silos
  • Commissioning of the remaining three generators and full completion of the power plant

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