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Treasury Metals plans to secure $ 10 million in fresh capital

A consortium of issuing banks led by Haywood Securities wants to Treasury Metals Inc. (TSX: TML; FRA: TRC) Raise 10,008,000 CAD fresh capital through the instrument of a so-called “Bought Deal” (guaranteed financing).

A total of 27,800,000 drawing receipts are issued at a cost of $ 0.36 per unit. The offer is in connection with the previously announced acquisition of all outstanding common shares of Tamaka Gold Corporation, a wholly owned subsidiary of First Mining Gold. With this transaction, Treasury acquires a 100% stake in the Goldlund gold project in the immediate vicinity of its own Goliath gold project (in northwestern Ontario. Details of the transaction can be found at: https://treasurymetals.com/site/assets/files/3968/tml -goldlund-proj-acquisition.pdf

Figure 1: The Goliath (Treasury) and Goldlund (First Mining) gold projects are only two kilometers apart. The list of synergies is long: Larger consolidated resource base; Potential for extended mine life and increased annual production; Extensive parcel of land of 330 km2 with a strike length of 65 km; Goliath and Goldlund have similar metallurgical properties; Potential for common processing infrastructure; Goldlund a truck away from a possible operation at Goliath; Cost reductions and optimization of operating costs per unit as a result of a stronger focus on the opencast mine; Improved operational flexibility and risk minimization; TML administration for evaluating various approval scenarios, using existing expertise and approval success at Goliath; Joint dialogue with local indigenous and interest groups; Uniform project development by a technical committee consisting of TML and FF representatives; Common municipal and official staff.

The units are held in trust until certain conditions are met. Conditions precedent include obtaining all required shareholder and regulatory approvals related to the transaction and approval from the Toronto Stock Exchange. If the conditions for the trust approval are not met on or before the date 90 days after the closing date of the takeover offer, the holders of the units will receive a cash amount equal to the issue price of the subscription receipts and all interest earned on the trust funds.

The net proceeds of the offer will be used for the exploration and development of the Goliath and Goldlund projects and for general corporate purposes.

The offer is expected to close on or around July 7, 2020 and is subject to certain customary conditions, including but not limited to, approval by the Treasury Department shareholders in connection with the transaction, receipt of all required regulatory approvals, and acceptance by the TSX.

For more details on the transaction and the Goliath and Goldlund projects, please visit the company’s website at: www.treasurymetals.com

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In accordance with section 34b of the WpHG and section 48f (5) BörseG (Austria), we would like to point out that GOLDINVEST Consulting GmbH and / or partner, client or employee of GOLDINVEST Consulting GmbH hold Treasury Metals shares and that there is therefore a conflict of interest. GOLDINVEST Consulting GmbH also reserves the right to buy or sell company shares at any time. In addition, GOLDINVEST Consulting GmbH is paid by Treasury Metals for reporting on the company. This is another, clear conflict of interest.

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