TSX: TML
TORONTO, May 5, 2016 /CNW/ - Treasury Metals Inc.
("Treasury Metals" or the "Company") is pleased to announce
Haywood Securities Inc., the agent for the Company's previously
announced brokered private placement financing of up to 4,200,000
units of the Company ("Units") at price of C$0.48 per Unit (the "Brokered Offering"), has
elected to exercise their over-allotment option in full to sell up
to an additional 2,100,000 Units, raising additional proceeds of up
to $1.0 million, resulting in a
revision to the total proceeds raised under the Offering of up to
$3.0 million (the "Final Brokered
Offering").
In addition, the Company has agreed to sell, on a non-brokered
basis, an additional 2,083,333 Units to a strategic financial
investor (the "Non-Brokered Offering") for additional gross
proceeds to the Company of $1
million, resulting in total gross proceeds to be raised
under the Final Brokered Offering and the Non-Brokered Offering
(collectively, the "Combined Offering") of up to $4.0 million.
Each Unit sold under the Final Brokered Offering and the
Non-Brokered Offering shall consist of one common share of 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
$0.70 for a period of 24 months from
the date of issuance.
The net proceeds of the Combined Offering will be used to fund
technical programs and mine permitting of the Company's
Goliath Gold Project and for working capital and general corporate
purposes.
Closing of the Combined Offering is anticipated to occur on or
about May 18, 2016 (the "Closing
Date"). Closing of each of the Brokered Offering and the
Non-Brokered Offering is subject to receipt of regulatory
approvals, including the acceptance of the Offering by the Toronto
Stock Exchange.
As previously announced, the Company has agreed to pay the Agent
a cash commission of 6.0% of the gross proceeds raised under the
Final Brokered Offering. The Agent will also receive compensation
options (the "Compensation Options") exercisable for 24 months
following the Closing Date 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 Final Brokered Offering, at an
exercise of $0.70 per common
share.
The common shares and Warrants comprising the Units, the
Compensation Options, and 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.