TSX: TML
TORONTO,
Nov. 15, 2013 /CNW/ - Treasury Metals
Inc. is pleased to announce it has entered into an mandate with and
subsequently received In-Principle Approval from RMB Resources Inc.
("RMB"), to arrange and provide a $6,000,000 Feasibility Finance Facility (the
"Facility") by the lender, RMB Australia Holdings Limited.
RMB is the resource merchant banking division of
the FirstRand Group. Concurrent to the RMB financing, the Company
will undertake to complete a private placement of common shares for
$2.5 million. The combined financing
will provide sufficient capital to fund the remaining technical
program required to complete a bankable feasibility study and the
mine permitting for Treasury's flagship Goliath Gold Project,
located in northwestern Ontario.
"We are pleased to add RMB Resource, a strong
partner with a wealth of mining knowledge and experience, to the
Goliath Gold Project," stated Martin
Walter, Treasury's President and Chief Executive Officer.
"This financing is a further endorsement of the project and reduces
financing risk for our shareholders. The transaction provides
Treasury with the necessary financial resources to accelerate and
complete the important Feasibility Study stage, an exciting time as
we transition towards becoming one of Canada's next gold producers."
Key terms of the Facility are as follows:
- $6,000,000 Secured, Medium Term
Facility of which an initial $3
million will be available on closing and a second tranche of
$3 million will be available upon
completion of specified project milestones;
- A Facility term of 2.5 years at CDOR plus 7.5% per annum;
- Pre-payment at any time without penalty;
- 1.5 million financier warrants, to be issued on the closing
date, which will entitle RMB, for a period of 3.5 years, to
purchase a common share of Treasury at an exercise price
equal to a 15% premium to the 20-day volume weighted average price
(VWAP) on the closing date capped at $0.55 per share. A second set of 1.5 million
financing warrants will be issued at the drawdown of the second
$3 million of the Facility. These
warrants will be priced at 15% premium at the time of the drawdown
notice up to an exercise price of $0.80, at which point the exercise price will be
calculated using 0% premium over the 20-day VWAP.
The Facility is expected to close by the end of December 2013 and is subject to customary
conditions and documentation including completion of the equity
component of the financing. The issue of the financier warrants and
private placement is subject to all necessary regulatory approvals
including the TSX. Additional details of the private
placement will be provided in due course.
Treasury Metals continues to advance mine permitting, technical
engineering and environmental programs in conjunction with a
Feasibility Study of the Goliath Gold Project (see Operational
Update press release dated October 23,
2013 for further details).
ABOUT RMB RESOURCES
RMB Resources is the resource financing division of the FirstRand
Group; one of the largest listed financial services companies
listed on the Johannesburg Stock Exchange. RMB specializes in
providing equity and debt-financing solutions for small to mid-tier
resource companies globally. RMB Resources provides debt funding
through conventional project financing, commodity pre-paid forward
financing as well as senior, subordinated, standby and bridge
financing. Staffed with experienced mining executives, RMB
Resources operates from its offices in Sydney, Melbourne, London, Johannesburg, Denver and New
York.
To view further details about the Goliath Gold Project, 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.
SOURCE Treasury Metals Inc.