TSX: TML
TORONTO, May 18, 2016 /CNW/ - Treasury Metals Inc.
("Treasury Metals" or the "Company") is pleased to
announce that it is completing its previously announced
brokered private placement financing, including the exercise
of the over-allotment option, prior to the opening of the market
this morning, for aggregate gross proceeds of $3.0 million (the "Offering") with Haywood
Securities Inc. acting as agent (the "Agent"). The Offering
consists of 6,258,000 units of the Company ("Units") at a price of
C$0.48 per Unit.
In addition, the Company is selling, 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 raised under the Brokered Offering and the
Non-Brokered Offering (collectively, the "Combined Offering") of
$4.0 million.
Each Unit sold under the Combined Offering consists 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.
The Company is paying a cash commission of
$170,150 and issuing an aggregate of
351,480 compensation options (the "Compensation Options") to the
Agent in connection with the Brokered Offering. The Compensation
Options are exercisable for 24 months following the closing date 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.
In addition to relying upon other available prospectus
exemptions to effect the private placement, a portion of the
Brokered Offering is being completed in accordance with
the exemption set out in BC Instrument 45-536 (Exemption from
prospectus requirement for certain distributions through an
investment dealer) (the "Investment Dealer Exemption"). In
accordance with the requirements of the Investment Dealer
Exemption, the Company confirms there is no material fact or
material change related to the Company which has not been generally
disclosed. The Company is issuing this press release announcing its
intention to complete the Brokered Offering in accordance with the
requirements of the Investment Dealer Exemption.
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
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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.
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SOURCE Treasury Metals Inc.