Treasury Metals Closes $4.0 Million Offering

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Toronto, Canada – Treasury Metals Inc. (“Treasury Metals” or the “Company” - http://www.commodity-tv.net/c/mid,2697,Company_Presentation/?v=295604 ) is pleased to announce  that it has completed its previously announced brokered private placement financing, including the  exercise [A1] of the over-allotment option, for aggregate gross proceeds of $3.0 million (the “Offering”) with Haywood Securities Inc. acting as agent (the “Agent”). The Offering consisted of 6,258,000 units of the Company (“Units”) at price of C$0.48 per Unit.

In addition, the Company sold, 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 consisted 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 paid a cash commission of $170,150 and issued 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 Offering was 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.                                                  

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.

Greg Ferron

Vice President, Corporate Development

T: 1.416.214.4654

greg@treasurymetals.com 

Martin Walter

President and Chief Executive Officer

T: 1.416.214.4654

martin@treasurymetals.com

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info@resource-capital.ch

www.resource-capital.ch

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.

 

 


 [A1]Almost all, but not the full amount.



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