TSX: TML
TORONTO, April 27, 2016 /CNW/ - Treasury Metals Inc.
("Treasury Metals" or the "Company") is pleased to announce that it
has entered into an agreement with Haywood Securities Inc. (the
"Agent") to raise aggregate gross proceeds of up to C$2.0 million in units ("Units") at a price of
C$0.48 per Unit (the "Offering") on a
commercially reasonable efforts private placement
basis.
Each Unit shall consist of one common share in the Company and
one half of one common share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant shall be exercisable into one common
share of the Company at an exercise price of C$0.70 for a period of 24 months from the
closing date.
The Company will grant the Agent an option to sell additional
Units (the "Over-Allotment Units") to raise additional gross
proceeds of up to C$1.0 million.
The net proceeds of the Offering will be used to fund the
advancement of the Company's Goliath Gold Project, and for working
capital and general corporate purposes.
Closing of the Offering is anticipated to occur on or about
May 18, 2016 (the "Closing"). Closing
of the Offering is subject to receipt of regulatory approvals,
including the acceptance of the Offering by the Toronto Stock
Exchange.
The Company has agreed to pay the Agent a cash commission of
6.0% of the gross proceeds raised under the Offering. The Agent
will also receive compensation options (the "Compensation Options")
exercisable at any time from the Closing to the day prior to the
date that is 24 months from the Closing to purchase that number of
common shares of the Company which is equal to 6.0% of the
aggregate number of Units issued pursuant to the Offering with an
exercise price per Compensation Option that is equal to the
exercise price of the Warrants.
The common shares and Warrants comprising the Units, the
Compensation Options, any shares issued upon due exercise of the
Warrants and Compensation Options, will be subject to a four-month
hold period under applicable securities laws in Canada.
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.
To view further details about the Goliath Gold Project or
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.
SOURCE Treasury Metals Inc.