TSX: TML
TORONTO, Dec. 20, 2013 /CNW/ - Treasury Metals Inc.
("Treasury Metals" or the "Company") (TSX:TML) is pleased to
announce that it has closed its previously announced brokered
placement of flow-through common shares ("Flow-Through Shares")
(see the news release dated December
4 and 18, 2013, respectively). 8,315,500 Flow-Through Shares
were sold at an issue price of $0.40
per Flow-Through Share for aggregate gross proceeds of $3,326,200 (the "Offering"). The Offering was
completed by a syndicate of agents led by Secutor Capital
Management Corporation and included Canaccord Genuity Corp.
In consideration for the services of the agents
in connection with the Offering the Company has paid a cash
commission equal to 7% of the gross proceeds received from the sale
of the Flow-Through Shares and has issued an aggregate of 201,250
non-transferrable broker warrants, with each broker warrant being
exercisable to acquire one common share of the Company at a price
of $0.50 per share for a period of 24
months from the closing of the Offering.
Treasury Metals intends to use the net proceeds
of the Offering for the advancement of the Company's Goliath Gold
Project as well as for general working capital purposes.
The Flow-Through Shares issued pursuant to the
Offering will be subject to a four-month hold period under
applicable securities laws in Canada.
A material change report in connection with the
Offering will be filed less than 21 days before closing of the
Offering. This shorter period is reasonable and necessary in the
circumstances as the Company wished to complete the Offering in a
timely manner.
The facility agreement (the "Facility
Agreement") with RMB Resources Inc. ("RMB") that was previously
announced on November 15 and
December 4, 2013 has been executed
today between the Company and RMB. The feasibility funding facility
(the "Facility") granted to the Company under the Facility
Agreement is expected to be drawn in January
2014 once all conditions precedent are satisfied. RMB issued
final approval of its mandate to arrange for and provide the
Facility on December 4, 2013.
"We are pleased to see such strong retail
investor interest and participation by a number of new and existing
institutional investors in the equity financing," stated
Martin Walter, Treasury's President
and Chief Executive Officer. "The equity financing, the RMB
facility and our ongoing royalty stream provides us with the
financial resources to accelerate and complete the important
feasibility study, mine permitting stage and additional exploration
programs on the Goliath Gold Project in Northwestern Ontario."
This news release does not constitute an offer
to sell or a solicitation of an offer to buy the securities
described herein in the United
States. The securities described herein have not been and
will not be registered under the United States Securities Act of
1933, as amended, and may not be offered or sold in the United States or to the account or benefit
of a U.S. person absent an exemption from the registration
requirements of such Act.
About Treasury Metals Inc.:
Treasury Metals Inc. is a Toronto-based, TSX-listed mining exploration
and development company developing and permitting the Goliath Gold
Project located in Northwestern
Ontario. The Company's flagship Goliath Gold Project is a
high-grade gold resource that demonstrates strong market
fundamentals, access to excellent infrastructure and a skilled
local workforce. Treasury Metals has commenced the mine permitting
process at its solely owned project with the vision of a
combination of surface and underground mining methods and one of
four projects advanced to the permitting stage in the province.
Established in 2008, Treasury Metals operates corporate
headquarters in Toronto and a
project office at the Goliath Gold Project.
To view further details about the Goliath Gold
Project, please visit the Company's website at
www.treasurymetals.com.
Forward-looking Statements
This press release contains forward-looking statements such as
the expected use of the net proceeds from the private placement,
our future financial condition, business plans and objectives,
results of operations and business. Such statements are based on
operations, estimates, forecasts and projections. They are not
guarantees of future performance or events and involve risks and
uncertainties that are difficult to predict and may be beyond
Treasury Metals' control. A number of important factors could cause
actual outcomes and results to differ materially from those
expressed in forward-looking statements, including those set forth
herein and in other public filings. In addition, such statements
relate to the date on which they are made. Consequently, undue
reliance should not be placed on such 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 law.
SOURCE Treasury Metals Inc.