Treasury Metals can access $6-million RMB financing

Feb 19, 2014

Treasury Metals Inc. has completed all conditions precedent, including all technical and legal due diligence requirements, for the $6-million feasibility financing facility with RMB Resources Inc. This provides the ability to access funds pursuant to the facility agreement entered between the company and RMB on Dec. 20, 2013.

The facility, of which an initial $3-million is available immediately and a second tranche of $3-million is available upon completion of specified project milestones, has a term of 2.5 years. When drawn, it will bear interest at the Canadian dealer offered rate plus 7.5 per cent per annum, and a 2.0-per-cent-per-annum fee will be paid on the available but undrawn amount of the initial $3-million tranche. In addition, in connection with the initial tranche, 1.5 million financier warrants were issued to RMB at closing, which entitles RMB to purchase a common share of the company at an exercise price of 39.5 cents for a period of 3.5 years. Additional terms related to the facility were previously announced on Nov. 15 and Dec. 4, 2013.

The company also today announced the appointment of Flora Wood to its board of directors, effective immediately. Ms. Wood has more than 15 years of capital markets and investor relations experience, including as the former director, investor relations, for Inmet Mining Corp. until its acquisition by First Quantum Minerals Ltd. and, prior to Inmet, was part of the Aquiline Resources Inc. management team until its acquisition by Pan American Silver Corp. Ms. Wood currently leads the investor relations team for Essar Steel Algoma. Ms. Wood also has a background in the financial services industry and holds an MA from University of Toronto.

“Adding an experienced financing partner like RMB at this stage is an important precedent for the company and project,” stated Martin Walter, Treasury’s president and chief executive officer. “Also, I am delighted to have Flora join the Treasury Metals’ board of directors; having previously worked with her at Aquiline, I know the unique set of skills and industry contacts she will bring to the team.”

Finally, the company’s drilling program at its flagship Goliath gold project located in Northwestern Ontario is continuing, and results will be provided as they become available.

http://www.treasurymetals.com/s/press_releases-cnw.asp