Treasury Metals Inc. is pleased to announce that it has entered into an agreement with Cormark Securities Inc., Canaccord Genuity Corp., and Raymond James Ltd. (collectively the Agents), pursuant to which the Agents have agreed to act, on a best efforts basis, as agent in the offer and sale of 3,480,000 flow through shares (Flow-Through Shares) of Treasury Metals (the Offering).
The Flow-Through Shares shall be offered at a price of $1.15 per share for aggregate gross proceeds of approximately $4.0 million. In addition, the Company has granted the Agents an option to increase the size of the Offering by an additional 1,740,000 Flow-Through Shares, exercisable at any time up to 48 hours prior to the closing of the Offering, which would increase the gross proceeds of the Offering by approximately $2.0 million.
The closing of the Offering is expected to occur on or about December 6, 2011 and is subject to the completion of formal documentation and receipt of regulatory approval, including the approval of the TSX.
The proceeds of the financing will be used to incur eligible Canadian Exploration Expenses, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2011. The funds are intended to be used to explore and advance Treasury Metals' gold projects located in the Kenora Mining District of northwestern Ontario.
To learn more about Treasury Metals, 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.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as the term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.