Treasury Metals Provides Corporate Update on Term Loan Maturity Date Extension and on the Weebigee Gold Project
Treasury Metals Provides Corporate Update
on Term Loan Maturity Date Extension and on
the Weebigee Gold Project
TSX:TML
OTCQX: TSRMF
TORONTO
,
Nov. 26, 2018
/CNW/ -
Treasury Metals Inc.
(
TSX: TML
) ("
Treasury Metals
" or the
"
Company
") is pleased to announce the Company has entered into a binding term sheet with Extract
Capital Master Fund Ltd. and Extract Lending LLC (together "Extract") to extend the maturity date of
the Company's existing convertible term loan (the "Term Loan") for three years (the
"Loan
Amendment"
).
The Loan Amendment will amend the maturity date of the Term Loan, extending it for a period of
three years from the effective date of closing that is anticipated to be on or about
November 30,
2018
. As part of the Loan Amendment, Extract has also agreed to assume the
US$2.2 million
portion of the
US$4.4 million
facility previously held by Loinette Company Leasing Ltd. which has
agreed to an early payout without penalty. The terms of the Loan Amendment will be subject to TSX
approval.
Pursuant to the terms of the Loan Amendment, the Term Loan shall 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$0.36
per Common Share, representing approximately a 50% premium to the closing price
of the Common Shares (
November 23, 2018
), which is the closing date of entering into the binding
term sheet.
All other terms of the Term Loan will remain unchanged.
As consideration to Extract for entering into the Loan Amendment, the Company will pay Extract the
following: (a) an extension fee of US$110,000, and (b) issue to Extract an aggregate of 600,000
common share purchase warrants (the "Warrants"), entitling Extract to purchase Common Shares at
an exercise price of C$0.40 per Common Share for a three-year term. The Company may compel
Extract to exercise the Warrants if the volume weighted average price of the Common Shares of the
Company is
C$0.60
or greater for thirty (30) consecutive trading days.
Exploration Agreement for Weebigee Gold Project
In addition, Treasury Metals is pleased to announce that its wholly owned subsidiary Goldeye
Explorations ("Goldeye") and
Sandy Lake First Nation
("SLFN") have entered into a one-year
extension of its Exploration Agreement (the "Exploration Agreement Extension") on its Weebigee
Gold Project to continue exploration activities. The Exploration Agreement has been in effect since
November 2013
.
The Weebigee Gold Project is 100% owned by Goldeye/Treasury and subject to an earn-in
agreement with current operator Sandy Lake Gold Inc. ("SLG") effective since
April 15, 2015
.
The Weebigee Gold Project is located 227 kilometres north of
Red Lake
in
Northwestern Ontario
. In
2014, a 21 drill hole program completed by Goldeye in the western part of the claim package
returned significant near surface results, including high grade gold intercepts of 12.86 Au g/t over
6.85 meters and 12.17 Au g/t over 6.2 meters. Further details regarding SLG's earn-in option
agreement and Weebigee are available at Treasury's website
www.treasurymetals.com
.
The Exploration Agreement Extension reflects the ongoing collaborative relationship between
Treasury Metals and SLFN, within whose Traditional Territory the Project is located. The parties are
committed to ongoing meaningful engagement and dialogue with a view to ensuring that the SLFN
community participates and benefits as the Project progresses. The Exploration Agreement
Extension does not pertain to the additional mineral claims staked by SLG which are outside
Goldeye's Weebigee Gold Project area.
To view further details about the Treasury Metals, please visit the Company's website at
www.treasurymetals.com
.
About Treasury Metals Inc.:
Treasury Metals is a gold focused exploration and development company with assets in
Ontario,
Canada
and is listed on the Toronto Stock Exchange ("TSX") under the symbol "TML". Treasury
Metals Inc.'s 100% owned Goliath Gold Project in northwestern
Ontario
is slated to become one of
Canada's
next producing gold mines. With first-rate infrastructure currently in place and gold
mineralization extending to surface, Treasury Metals plans on the initial development of an open pit
gold mine to feed a 2,500 tonne per day processing plant with subsequent underground operations
in the latter years of the mine life. Treasury Metals is currently in the mine permit process on the
Goliath Gold Project.
Follow us on Twitter @TreasuryMetals
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.
SOURCE
Treasury Metals Inc.
View original content:
http://www.newswire.ca/en/releases/archive/November2018/26/c8504.html
%SEDAR: 00027114E
For further information:
Greg Ferron, Interim CEO, T: 1.416.214.4654,
[email protected]; Mark Wheeler, Director, Projects, T: 1.416.214.4654,
CO: Treasury Metals Inc.
CNW 07:30e 26-NOV-18