Platinex Inc. and Treasury Metals Inc. to Consolidate Adjoining Projects to Advance Shining Tree Gold Property, Ontario
Platinex Inc. and Treasury Metals Inc. to Consolidate Adjoining Projects to
Advance Shining Tree Gold Property, Ontario
TSX: TML
OTCQX: TSRMF
TORONTO
,
March 11, 2020
/CNW/ -
Treasury Metals Inc.
(
TSX: TML)
and Platinex Inc
.
(CSE: PTX) ("
Platinex"
) have entered into a non-binding heads of
agreement between the two companies (the "
Transaction
") to create the largest combined gold focused property package in the Shining Tree District, in northern
Ontario
. The highlights of the agreement are, namely:
Treasury will transfer a 100% interest in its 280 claim unit 5,045 Ha. (12,466 ac.) Shining Tree Fawcett East property (the "
Shining Tree East Property
") to
Platinex, to create the largest combined gold focused property package in the Shining Tree District, in northern
Ontario
(the "
Shining Tree Property
"). The
Shining Tree Property is located on 21 kilometres of the Tyrrell-Ridout Deformation Zone which also hosts both IAMGOLD's Côté Lake gold deposit and Pan
American's Juby deposit;
Treasury will transfer to Platinex royalties comprising four
Ontario
and
Chile
based exploration projects covering gold, PGM's and base metal opportunities
(the "
Royalties
") to enhance Platinex's existing royalty portfolio;
In consideration for acquiring the Shining Tree East Property and the Royalties, Platinex will issue to Treasury 12,500,000 common shares ("
Consideration
Shares
") of Platinex and 5,000,000 non-transferable common share purchase warrants ("
Consideration Warrants
") of Platinex. Each Consideration
Warrant will be exercisable at a price of
$0.05
per share for a period of three years from the date of issuance, provided that if the closing price of the
common shares of Platinex ("
Platinex Shares
") is equal to or greater than
$0.30
for a period of 20 consecutive trading days, Platinex will have the right to
increase the exercise price of the Consideration Warrants by giving a written notice to Treasury that the exercise price shall be increased to
$0.15
per share
on the date that is 10 days from the date of such notice. In addition, Treasury shall not exercise the Consideration Warrants if such exercise would result in
Treasury owning 20% or more of the issued and outstanding Platinex Shares;
Treasury will contribute operational efficiencies between the two companies with a view to provide effective management going forward to advance the
Shining Tree Property;
Treasury will undertake to support Platinex's management for a two-year period in shareholder votes;
Platinex will grant Treasury a first right of refusal to participate in further financings of Platinex shares for a period of two years to maintain its percentage
interest; and
Treasury will have the right to appoint a nominee to the board of directors of Platinex.
Completion of the Transaction is subject to further due diligence and the parties entering into a formal agreement on or before
March 31, 2020
.
Mr.
James R. Trusler
, Chairman of Platinex, stated, "It's exciting to have the close working relationship with Treasury Metals. With the addition of the Shining Tree
East Property, Platinex's Shining Tree Property holdings will total 19,895 Ha (49,304ac). The expanded property will now adjoin the Pan American property in
Tyrrell Township which hosts the 4 million ounce Juby gold deposit and close proximity along east west structures to the Coté Lake gold project. Significant
potential for commercial gold deposits has been revealed in past exploration on Platinex's property and management is especially looking forward to examining the
underexplored 21 km stretch of the Tyrrell Ridout deformation zone which is the key locus for gold mineralization in Shining Tree and underlies the property.
Platinex will seek further consolidation and strategic initiatives within the district."
Mr.
Greg Ferron
, Treasury Metals Inc.'s CEO, stated that, "The consolidation of the Shining Tree properties provides multiple benefits and efficiencies between
the two groups. We are very excited to make use of the Platinex team's significant wealth of knowledge of the area to see them develop our underutilized project
in conjunction with theirs. The Transaction makes for a compelling land package in a very prospective exploration camp that is starting to see a great deal of
activity."
Qualified Person
Technical information in this press release has been reviewed and approved by
Adam Larsen
, P. Geo, who is the qualified person under the definitions
established by National Instrument 43-101.
To view further details about the Goliath Gold Project, please visit the Company's website at
www.treasurymetals.com
.
Follow us on Twitter @TreasuryMetals
About Treasury Metals Inc.
Treasury Metals Inc. is a gold focused exploration and development company with assets in
Canada
and is listed on the Toronto Stock Exchange ("TSX") under
the symbol "TML" and on the OTCQX® Best Market under the symbol "TSRMF".
Forward-looking Statements
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 laws.
View original content:
http://www.prnewswire.com/news-releases/platinex-inc-and-treasury-metals-inc-to-consolidate-adjoining-projects-to-advance-shining-tree-gold-property-ontario-301021250.html
SOURCE
Treasury Metals Inc.
View original content:
http://www.newswire.ca/en/releases/archive/March2020/11/c2620.html
%SEDAR: 00027114E
For further information:
Greg Ferron, CEO and Director, T: 1.416.214.4654, [email protected]; Mark Wheeler, Director Projects, Goliath Gold
Project, T: 1.416.214.4654, [email protected]
CO: Treasury Metals Inc.
CNW 01:00e 11-MAR-20