TORONTO, Nov. 15, 2013 /CNW/ - Treasury Metals Inc. is pleased to
announce it has entered into an mandate with and subsequently received
In-Principle Approval from RMB Resources Inc. ("RMB"), to arrange and
provide a $6,000,000 Feasibility Finance Facility (the "Facility") by
the lender, RMB Australia Holdings Limited.
RMB is the resource merchant banking division of the FirstRand Group.
Concurrent to the RMB financing, the Company will undertake to complete
a private placement of common shares for $2.5 million. The combined
financing will provide sufficient capital to fund the remaining
technical program required to complete a bankable feasibility study and
the mine permitting for Treasury's flagship Goliath Gold Project,
located in northwestern Ontario.
"We are pleased to add RMB Resource, a strong partner with a wealth of
mining knowledge and experience, to the Goliath Gold Project," stated
Martin Walter, Treasury's President and Chief Executive Officer. "This
financing is a further endorsement of the project and reduces financing
risk for our shareholders. The transaction provides Treasury with the
necessary financial resources to accelerate and complete the important
Feasibility Study stage, an exciting time as we transition towards
becoming one of Canada's next gold producers."
Key terms of the Facility are as follows:
$6,000,000 Secured, Medium Term Facility of which an initial $3 million
will be available on closing and a second tranche of $3 million will be
available upon completion of specified project milestones;
A Facility term of 2.5 years at CDOR plus 7.5% per annum;
Pre-payment at any time without penalty;
1.5 million financier warrants, to be issued on the closing date, which
will entitle RMB, for a period of 3.5 years, to purchase a common
share of Treasury at an exercise price equal to a 15% premium to the
20-day volume weighted average price (VWAP) on the closing date capped
at $0.55 per share. A second set of 1.5 million financing warrants will
be issued at the drawdown of the second $3 million of the Facility.
These warrants will be priced at 15% premium at the time of the
drawdown notice up to an exercise price of $0.80, at which point the
exercise price will be calculated using 0% premium over the 20-day
The Facility is expected to close by the end of December 2013 and is
subject to customary conditions and documentation including completion
of the equity component of the financing. The issue of the financier
warrants and private placement is subject to all necessary regulatory
approvals including the TSX. Additional details of the private
placement will be provided in due course.
Treasury Metals continues to advance mine permitting, technical
engineering and environmental programs in conjunction with a
Feasibility Study of the Goliath Gold Project (see Operational Update
press release dated October 23, 2013 for further details).
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.
To view further details about the Goliath Gold Project, please visit the
Company's website at www.treasurymetals.com.
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
SOURCE: Treasury Metals Inc.
For further information:
Vice President, Corporate Development
President and Chief Executive Officer