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TORONTO, Nov. 01, 2019 (GLOBE NEWSWIRE) -- Treasury Metals Inc. (“Treasury” or the “Company”) (TSX: TML) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by PI Financial Corp. (collectively, the "Underwriters") including Haywood Securities Ltd., pursuant to which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, 8,100,000 flow-through units (the “Flow-Through Units”) of the Company, at a price per Flow-Through Unit of $0.285 (the “Issue Price”), for gross proceeds of C$2,308,500 (the "Offering"). The Issue Price represents a premium of approximately 14% to the closing price of the Corporation's common shares on the Toronto Stock Exchange on October 31, 2019.
Each Flow-Through Unit shall be comprised of one common share of the Company issued on a flow-through basis (“Flow-Through Share”) and one-half of one common share purchase warrant to be issued on a non-flow-through basis (each whole such warrant, a “Warrant”). Each whole Warrant shall entitle the holder thereof to acquire one common share of Treasury at a price of $0.45 for a period of 24 months following the closing of the Offering, and, at the discretion of the Company, may be subject to acceleration and called prior to the expiry date in the event that the closing price of the Common Shares is $0.75 or more for twenty consecutive trading days. The Flow-Through Shares will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada)).
The Company has also granted the underwriters an option to purchase up to an additional 1,620,000 Flow-Through Units to cover over-allotments, exercisable in whole or in part at any time prior to the closing date of the Offering.
The gross proceeds from the sale of the Flow-Through Shares will be used for general exploration expenditures on Treasury’s properties located in Ontario. The exploration program will fund a 10,000-metre infill and expansion drilling program with the initial 5,000-metres focused on the C Zone Resource Area where several significant gold intersections have been found and the additional 5,000-metres will drill test both down dip and along strike targets identified in the downhole IP Survey and recent mine scheduling modelling work (see press release dated October 24, 2019).
The Offering is scheduled to close on or about November 21, 2019, or such other date as agreed between the Company and the underwriters, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Toronto Stock Exchange.
In connection with the Offering, the underwriters will receive on closing of the Offering: (i) a cash commission of 6.0% of the gross proceeds of the Offering, excluding gross proceeds from the issuance of Flow-Through Units on a president’s list to be agreed upon by the Company and the Underwriters (the “President’s List”) for which a commission of 3.0% of such gross proceeds will be paid by the Company to the Underwriters; and (ii) that number of non-transferable compensation options as is equal to (a) 6.0% of the aggregate number of Flow-Through Units sold under the Offering, excluding those Flow-Through Units sold to subscribers on the President’s List, and (b) 3.0% of the aggregate number of Flow-Through Units sold under the Offering to participants on the President’s List. Each compensation option shall be exercisable into one common share of the Company at a price of $0.285 per common share for a period of 24 months from the closing date of the Offering.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Treasury Metals
Treasury Metals Inc. is a gold focused exploration and development company with assets in Canada and is listed on the Toronto Stock Exchange (“TSX”) under the symbol “TML” and on the OTCQX® Best Market under the symbol TSRMF. 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.
For further information please contact:
Chief Executive Officer
Treasury Metals: 416-214-4654
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. All statements, other than of historical facts, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the completion of the Offering as described herein are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “to earn”, “to have”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to obtain any necessary regulatory approvals, the termination of any agreement governing the Offering, general business and economic conditions, changes in world gold markets, sufficient labour and equipment being available, changes in laws and permitting requirements, unanticipated weather changes, title disputes and claims, environmental risks as well as those risks identified in the Company’s annual Management’s Discussion and Analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described and accordingly, readers should not place undue reliance on forward-looking statements. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
TORONTO, Oct. 24, 2019 /CNW/ - Treasury Metals Inc. (TSX: TML) is pleased to announce the results of its downhole induced polarization ("IP") survey program on the Company's 100%-owned Goliath Gold Project, located in northwestern Ontario.
The Company's IP survey determined that zones that host mineralization are extending to depth and along strike. The Company completed a total of 15 drill holes with maximum vertical depths ranging from 100 to 525 metres below surface along a strike length of 1.2 kilometres. Additional focused downhole surveys were completed to increase the resolution of these results.
The IP survey results have been integrated into the current geological database and used to aid the targeting in the upcoming drill program. Upon completion of the Company's active Soil Gas Hydrocarbon sampling program that extends approximately 10 km along strike to the easternmost edge of the property boundary, the Company's winter exploration drilling program will be commenced.
Goliath's Downhole IP Survey
The IP survey confirmed the Project's gold bearing zones correlate with high Resistivity and Chargeability responses. This is believed to be associated with strong silicification and an increase in disseminated sulphides, both of which are found in the Goliath gold zones. The inversion model suggests that these zones are located on a major structure and has outlined signatures of the high-grade gold shoots (see Figure 1) including the confirmation of the down-dip extension potential below the current resource to approximately a depth of 800 metres below surface. The survey also identified the continuation of the Resistivity and Chargeability responses on the east and west sides of the resource area, indicating that the zones which host the gold extend along strike of the deposit in both directions. Golden Mallard Corp. was Treasury's lead consultant on the IP survey.
A map with the exploration program's drill hole locations is located in Goliath Gold Project's Geology section at www.treasurymetals.com.
Winter Exploration Drill Program
The 5,000-metre infill and expansion drilling program will focus on the C Zone East Resource Area where several significant gold intersections have been found, including hole TL18-494 with 111 g/t Au over 1.00m and TL18-488A with 3.87 g/t Au over 4.70 m (see press release dated August 13, 2018), and drill test select down dip targets identified in the downhole IP Survey.
Regional Soil Sampling Program
A completed 2018 Soil Gas Hydrocarbon orientation survey identified a strong anomaly believed to be caused by gold mineralization over the resource area with a high level of confidence (5.5 out of 6 SGH signature rating). A follow up program commenced with sampling extended to span the entire 10km strike length to the east of the Goliath deposit, as well as a number of other areas of interest including highly prospective areas on the eastern side of the property (Figure 2). Approximately 800 additional samples have been taken to date and will continue to be collected through the seasonal changeover. The results from this program will be utilized to plan future exploration field programs.
Engineering and Mine Design Update
With the recent completion of the Federal Environmental Assessment at Goliath, Treasury Metals is advancing engineering to a PFS level with a current focus on:
- Mining Plus Ltd and RPM Global Canada Ltd, respectively, reviewing underground and open pit mining schedules and costs.
- The Company has completed sufficient technical support studies to confirm a final throughput for life of mine processing rates. Ausenco Engineering Canada Inc. is designing mill and processing infrastructure for the specified throughput.
- Tailings storage options and costing has been completed to a PFS level by Knight Peisold with on-going optimization to reduce costs and integrate new environmental green liner.
- The company continues to investigate the use of battery technology, automation of mining processes and use of biosolids within the mine design for inclusion in upcoming studies.
The Company will continue to advance engineering studies and will provide a completion date in the near future.
To view further details about the Goliath Gold Project please visit the Company's website at www.treasurymetals.com.
Technical information in this press release has been reviewed and approved by Adam Larsen, P. Geo, who is the qualified person under the definitions established by National Instrument 43-101. All results from the program will be available for viewing in the Complete Assay Table on the Company's website.
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About Treasury Metals Inc.:
Treasury Metals Inc. is a gold focused exploration and development company with assets in Canada and is listed on the Toronto Stock Exchange ("TSX") under the symbol "TML" and on the OTCQX® Best Market under the symbol TSRMF. 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 per day processing plant with subsequent underground operations in the latter years of the mine life.
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.
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Greg Ferron, CEO and Director, T: 1.416.214.4654, firstname.lastname@example.org; Mark Wheeler, Director, Projects, T: 1.416.214.4654, email@example.com