Treasury Metals Reports Pico Machay Gold Project Acquisition Update
02 Agosto 2011 - 1:00PM
Marketwired
Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:
TML) announced today that the Company and Pan American Silver Corp.
("Pan American") have agreed to amend certain terms of the
previously announced proposed acquisition by the Company of the
Pico Machay Gold Project in Peru (the "Transaction"). In
particular, the parties have agreed to amend the terms of
Definitive Agreement dated May 18, 2011 (the "Agreement") to extend
the closing date of the Transaction to August 31, 2011. In
addition, the Company has the option to satisfy up to US$10.5
million of the US$21 million cash portion of the purchase price
through the issuance of a secured promissory note to Pan American
due December 31, 2011, subject to the right of the Company to
pre-pay at any time (the "Note"). The Company will determine
whether to finance with the Note based on prevailing equity market
conditions.
Martin Walter, President and Chief Executive Officer, commented,
"Amending the terms of the Transaction gives the Company greater
flexibility to finance in a manner that is in the best interests of
the Company's stakeholders. We are very familiar with the Pico
Machay Gold Project and this Transaction will bring shareholders
additional exploration upside and near-term production. In this
strong gold market we are well positioned to become a low-cost
producer in a mining friendly jurisdiction like Peru. Treasury
Metals remains committed to its multi-asset growth strategy in the
Americas, with near-term production potential at Pico Machay in
Peru, and ongoing exploration at the Goliath Gold Project in
Dryden, Ontario."
Under the terms of the Note, the Company must pay a fixed
commitment fee in an amount equal to the interest that would accrue
on the principal amount of the Note from the date of issuance to
December 31, 2011 if the principal amount was subject to an annual
interest rate of 12% compounded monthly.
The Transaction remains conditional upon, among other things,
the receipt of all required regulatory approval, including the
approval of the Toronto Stock Exchange, and the completion by the
Company of an equity offering to fund the cash consideration
payable to Pan American.
The Company has posted on its website an updated corporate
presentation which includes further details of the Pico Machay Gold
Project.
To learn more about Treasury Metals, please visit the Company's
website at www.treasurymetals.com.
Forward-looking Statements
This release includes certain statements that may be deemed to
be "forward-looking statements". All statements in this release,
other than statements of historical facts, that address events or
developments that management of the Company expect, are
forward-looking statements. Actual results or developments may
differ materially from those in forward-looking statements.
Treasury Metals disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, save and except as may be
required by applicable securities laws.
Contacts: Treasury Metals Inc. Greg Ferron Vice President,
Corporate Development 1.416.214.4654 greg@treasurymetals.com
Treasury Metals Inc. Martin Walter President and CEO 1.416.214.4654
martin@treasurymetals.com www.treasurymetals.com
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