TSX:TML
OTCQX: TSRMF
TORONTO, Nov. 26, 2018 /CNW/ - Treasury Metals Inc.
(TSX: TML) ("Treasury Metals" or the
"Company") is pleased to announce the Company has entered
into a binding term sheet with Extract Capital Master Fund Ltd. and
Extract Lending LLC (together "Extract") to extend the maturity
date of the Company's existing convertible term loan (the "Term
Loan") for three years (the "Loan Amendment").
The Loan Amendment will amend the maturity date of the Term
Loan, extending it for a period of three years from the effective
date of closing that is anticipated to be on or about November 30, 2018. As part of the Loan Amendment,
Extract has also agreed to assume the US$2.2
million portion of the US$4.4
million facility previously held by Loinette Company Leasing
Ltd. which has agreed to an early payout without penalty. The terms
of the Loan Amendment will be subject to TSX approval.
Pursuant to the terms of the Loan Amendment, the Term Loan shall
be convertible at the election of Extract into common shares in the
capital of the Company (the "Common Shares") at a conversion price
of C$0.36 per Common Share,
representing approximately a 50% premium to the closing price of
the Common Shares (November 23,
2018), which is the closing date of entering into the
binding term sheet.
All other terms of the Term Loan will remain
unchanged.
As consideration to Extract for entering into the Loan
Amendment, the Company will pay Extract the following: (a) an
extension fee of US$110,000, and (b) issue to Extract an
aggregate of 600,000 common share purchase warrants (the
"Warrants"), entitling Extract to purchase Common Shares at an
exercise price of C$0.40 per Common Share for a three-year
term. The Company may compel Extract to exercise the Warrants
if the volume weighted average price of the Common Shares of the
Company is C$0.60 or greater for
thirty (30) consecutive trading days.
Exploration Agreement for Weebigee Gold Project
In addition, Treasury Metals is pleased to announce that its
wholly owned subsidiary Goldeye Explorations ("Goldeye") and
Sandy Lake First Nation ("SLFN")
have entered into a one-year extension of its Exploration Agreement
(the "Exploration Agreement Extension") on its Weebigee Gold
Project to continue exploration activities. The Exploration
Agreement has been in effect since November
2013.
The Weebigee Gold Project is 100% owned by Goldeye/Treasury and
subject to an earn-in agreement with current operator Sandy Lake
Gold Inc. ("SLG") effective since April 15,
2015.
The Weebigee Gold Project is located 227 kilometres north of
Red Lake in Northwestern Ontario. In 2014, a 21 drill hole
program completed by Goldeye in the western part of the claim
package returned significant near surface results, including high
grade gold intercepts of 12.86 Au g/t over 6.85 meters and 12.17 Au
g/t over 6.2 meters. Further details regarding SLG's earn-in
option agreement and Weebigee are available at Treasury's website
www.treasurymetals.com.
The Exploration Agreement Extension reflects the ongoing
collaborative relationship between Treasury Metals and SLFN, within
whose Traditional Territory the Project is located. The
parties are committed to ongoing meaningful engagement and dialogue
with a view to ensuring that the SLFN community participates and
benefits as the Project progresses. The Exploration Agreement
Extension does not pertain to the additional mineral claims staked
by SLG which are outside Goldeye's Weebigee Gold Project area.
To view further details about the Treasury Metals, please visit
the Company's website at www.treasurymetals.com.
About Treasury Metals Inc.:
Treasury Metals is a gold focused exploration and development
company with assets in Ontario,
Canada and is listed on the Toronto Stock Exchange ("TSX")
under the symbol "TML". Treasury Metals Inc.'s 100% owned Goliath
Gold Project in northwestern Ontario is slated to become one of
Canada's next producing gold
mines. With first-rate infrastructure currently in place and gold
mineralization extending to surface, Treasury Metals plans on the
initial development of an open pit gold mine to feed a 2,500 tonne
per day processing plant with subsequent underground operations in
the latter years of the mine life. Treasury Metals is currently in
the mine permit process on the Goliath Gold Project.
Follow us on Twitter @TreasuryMetals
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.