Treasury Metals closes $3.32-million placement

Dec 20, 2013

TREASURY METALS CLOSES EQUITY FINANCING AND ENTERS INTO FACILITY AGREEMENT WITH RMB RESOURCES INC.

Treasury Metals Inc. has closed its previously announced brokered placement of flow-through common shares (see the news release dated Dec. 4 and Dec. 18, 2013, respectively). The company sold 8,315,500 flow-through shares at an issue price of 40 cents per flow-through share for aggregate gross proceeds of $3,326,200. The offering was completed by a syndicate of agents led by Secutor Capital Management Corp. and included Canaccord Genuity Corp.

In consideration for the services of the agents in connection with the offering the company has paid a cash commission equal to 7 per cent of the gross proceeds received from the sale of the flow-through shares and has issued an aggregate of 201,250 non-transferrable broker warrants, with each broker warrant being exercisable to acquire one common share of the company at a price of 50 cents per share for a period of 24 months from the closing of the offering.

Treasury Metals intends to use the net proceeds of the offering for the advancement of the company’s Goliath gold project as well as for general working capital purposes.

The flow-through shares issued pursuant to the offering will be subject to a four-month hold period under applicable securities laws in Canada.

A material change report in connection with the offering will be filed less than 21 days before closing of the offering. This shorter period is reasonable and necessary in the circumstances as the company wished to complete the offering in a timely manner.

The facility agreement with RMB Resources Inc. that was previously announced on Nov. 15 and Dec. 4, 2013, was executed today between the company and RMB. The feasibility financing facility granted to the company under the facility agreement is expected to be drawn in January, 2014, once all conditions precedent are satisfied. RMB issued final approval of its mandate to arrange for and provide the facility on Dec. 4, 2013.

“We are pleased to see such strong retail investor interest and participation by a number of new and existing institutional investors in the equity financing,” stated Martin Walter, Treasury’s president and chief executive officer. “The equity financing, the RMB facility and our ongoing royalty stream provides us with the financial resources to accelerate and complete the important feasibility study, mine permitting stage and additional exploration programs on the Goliath gold project in Northwestern Ontario.”

We seek Safe Harbor.

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