TSX: TML
TORONTO, Feb. 19, 2014 /CNW/ - Treasury Metals Inc. (TSX:TML) is pleased
to announce it has completed all conditions precedent including all
technical and legal due diligence requirements for the $6 million
feasibility funding facility with RMB Resources Inc. ("RMB") (the
"Facility"). This provides the ability to access funds pursuant to the
Facility Agreement entered between the Company and RMB on December 20,
2013A.
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 CDOR plus 7.5% per annum and a 2.0% 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 $0.395 for a period of 3.5 years. Additional terms related to
the Facility were previously announced on November 15 and December 4,
2013A.
The Company also today announced the appointment of Flora Wood to its
Board of Directors, effective immediately. Ms. Wood has more than 15
years' capital markets and investor relations experience including as
the former Director, Investor Relations for Inmet Mining Corporation
until its acquisition by First Quantum Minerals Limited, 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 M.A. 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 ongoing and results will be
provided as they become available.
ABOUT RMB RESOURCES
RMB Resources is the resource financing division of the FirstRand Group;
one of the largest listed financial services companies listed on the
Johannesburg Stock Exchange. RMB specializes in providing equity and
debt-financing solutions for small to mid-tier resource companies
globally. RMB Resources provides debt funding through conventional
project financing, commodity pre-paid forward financing as well as
senior, subordinated, standby and bridge financing. Staffed with
experienced mining executives, RMB Resources operates from its offices
in Sydney, Melbourne, London, Johannesburg, Denver and New York.
ABOUT TREASURY METALS
Treasury Metals Inc. is a Toronto-based, TSX-listed mining exploration
and development company developing and permitting the Goliath Gold
Project located in Northwestern Ontario. The Company's flagship Goliath
Gold Project is a high-grade gold resource that demonstrates strong
market fundamentals, access to excellent infrastructure and a skilled
local workforce. Treasury Metals has commenced the mine permitting
process with the vision of a combination of an open pit and underground
mining methods. Established in 2008, Treasury Metals operates corporate
headquarters in Toronto and a project office at the Goliath Gold
Project.
To view further details about the Goliath Gold Project, please visit the
Company's website at www.treasurymetals.com.
Forward-looking Statements
This press release contains forward-looking statements such as the
expected use of the net proceeds from the private placement, our future
financial condition, business plans and objectives, results of
operations and business. Such statements are based on operations,
estimates, forecasts and projections. They are not guarantees of future
performance or events and involve risks and uncertainties that are
difficult to predict and may be beyond Treasury Metals' control. A
number of important factors could cause actual outcomes and results to
differ materially from those expressed in forward-looking statements,
including those set forth herein and in other public filings. In
addition, such statements relate to the date on which they are made.
Consequently, undue reliance should not be placed on such
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.
