Treasury Metals Announces Amendment and Extension of Convertible Debenture
Treasury Metals Announces Amendment and
Extension of Convertible Debenture
TSX: TML OTCQX: TSRMF
TORONTO
,
June 15, 2023
/CNW/ -
Treasury Metals Inc.
(TSX: TML) (OTCQX: TSRMF)
("
Treasury
" or the "
Company
") is pleased to announce that the Company and its lender's agent,
Extract Advisors LLC ("
Extract
"), have completed an amendment (the "
Amendment
") to the existing
convertible term loan (the
"Loan
"). The Amendment amended, among other terms, the maturity date
of the Loan (extending it to
June 30, 2026
from
June 30, 2023
) and both fixes and reduces the
interest rate to 9.75% from a floating rate of LIBOR + 6.5%.
Pursuant to the terms of the Amendment, the Loan will continue to be convertible at the election of
Extract into common shares in the capital of the Company (the "
Common Shares")
at a conversion
price of
C$0.96
per Common Share. As consideration for the extension of the Loan, Treasury will
issue approximately 8.2 million Common Share purchase warrants (the "
Warrants
"). Each Warrant
is exercisable for one Common Share for a period of three (3) years from the date of issuance, at
an exercise price of
$0.441
per Warrant, which represents a 50% premium to the 20-day VWAP of
the Common Shares as at
May 31, 2023
.
The Amendment also provides flexibility for the Company to pursue project financing, with the ability
to subordinate the Loan with project financing or prepay the Loan in cash if a suitable intercreditor
agreement between Extract and the project financing provider cannot be reached. Such prepayment
option is subject to the Company paying a premium equal to the greater of (a) interest on the
outstanding principal amount of the Loan for the remainder of the Loan term, payable in cash, and
(b) the fair value of an embedded derivative conversion feature set out in the Amendment as of the
prepayment date, payable in cash and/or Common Shares to be priced based on the higher of: (i)
the 20-day VWAP for the date immediately prior to the prepayment date; and (ii) the lowest
discounted price permitted by the polices of the TSX.
All other terms of the Loan will remain as per the terms set out in prior agreements.
Jeremy Wyeth
, President and CEO of Treasury, commented "We are pleased to have the continued
support of Extract, as both lender and significant shareholder, as we progress activities at our
Goliath Gold Complex. The extension of the Loan, on favourable terms, allows Treasury to maintain
its cash resources to further our goal of advancing our project. Value engineering activities at the
Goliath Gold Complex are underway in advance of feasibility study work in 2023 and exploration
activities, targeting existing and potential targets, have resumed on our 330-square kilometre
property package."
About Treasury Metals Inc.
Treasury Metals Inc. is a gold-focused company with assets in
Canada
. Treasury's Goliath Gold
Complex, which includes the Goliath, Goldlund and Miller deposits, is located in
Northwestern
Ontario
. The deposits benefit substantially from excellent access to the Trans-Canada Highway,
related power and rail infrastructure and close proximity to several communities, including
Dryden,
Ontario
. For information on the Goliath Gold Complex, please refer to the technical report, prepared
in accordance with NI 43–101, entitled "Goliath Gold Complex – NI 43–101 Technical Report and
Prefeasibility Study" and dated
March 27, 2023
with an effective date of
February 22, 2023
, led by
independent consultants Ausenco Engineering Canada Inc. The technical report is available on
SEDAR at
www.sedar.com
, on the OTCQX at
www.otcmarkets.com
and on the Company website
at
www.treasurymetals.com
.
The Company also owns several other projects throughout
Canada
, including the Weebigee-Sandy
Lake Gold Project JV, and grassroots gold exploration property Gold Rock. Treasury is committed
to inclusive, informed and meaningful dialogue with regional communities and Indigenous Nations
throughout the life of all our Projects and on all aspects, including creating sustainable economic
opportunities, providing safe workplaces, enhancing of social value and promoting community well-
being.
To view further details about Treasury, please visit the Company's website at
www.treasurymetals.com
.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain "forward-looking information" and "forward-looking statements"
(collectively, forward-looking statements") within the meaning of Canadian and
United States
securities legislation that is based on expectations, estimates, projections and interpretations as at
the date of this news release. Any statement that involves predictions, expectations, interpretations,
beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not
always, using phrases such as "expects", or "does not expect", "is expected", "interpreted",
"management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled",
"forecasts", "estimates", "potential", "feasibility", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or
"will" be taken to occur or be achieved) are not statements of historical fact and may be forward-
looking information and are intended to identify forward-looking information.
Since forward-looking information address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not limited to, exploration
and production for precious metals; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of resource estimates; health, safety
and environmental risks; worldwide demand for gold and base metals; gold price and other
commodity price and exchange rate fluctuations; environmental risks; competition; incorrect
assessment of the value of acquisitions; ability to access sufficient capital from internal and
external sources; and changes in legislation, including but not limited to tax laws, royalties and
environmental regulations. Actual results, performance or achievement could differ materially from
those expressed in, or implied by, the forward-looking information and, accordingly, no assurance
can be given that any of the events anticipated by the forward-looking information will transpire or
occur, or if any of them do so, what benefits may be derived therefrom and accordingly, readers
are cautioned not to place undue reliance on the forward-looking information.
SOURCE
Treasury Metals Inc.
View original content:
http://www.newswire.ca/en/releases/archive/June2023/15/c4757.html
%SEDAR: 00027114E
For further information:
Jeremy Wyeth, President & CEO, T: +1 416 214 4654; Orin Baranowsky,
CFO, T: +1 416 214 4654; Email: [email protected], Twitter @TreasuryMetals, Toll-free: 1-
855-664-4654
CO: Treasury Metals Inc.
CNW 17:00e 15-JUN-23