Non-brokered deal proceeds will develop, explore Goliath Gold Project
By Devika Patel
Knoxville, Tenn., Dec. 6 - Treasury Metals Inc. said it completed a non-brokered private placement of units. It raised C$3.48 million
The company sold 4,845,536 units of one common share and one half-share warrant at C$0.55 apiece for C$2.67 million. Each whole warrant is exercisable at C$0.70 for 18 months.
The company also sold 1,161,930 flow-through units of one flow-through common share and one half-share warrant at C$0.70 apiece for C$813,351. Each whole flow-through warrant is exercisable at C$1.00 for 18 months
The warrant strike prices reflect a 2.78% discount and a 38.89% premium, respectively, to the Dec. 3 closing share price of C$0.72.
The deal was "led largely by the management team," Wanda Cutler, a corporate development consultant working with the company, told Prospect News.
"It was oversubscribed; there was a lot of demand for it," she said.
When asked if the company intended to take advantage of the demand and come back for more funds, she said, "Future financings will depend on what we put together for [the 2011 drill program] and our success with that." She noted that "to do aggressive drilling, that requires financing."
Proceeds will be used to explore and develop the Goliath Gold Project and for general corporate purposes.
Toronto-based Treasury Metals is a mineral explorer.
Stephanie N. Rotondo contributed to this article
| Issuer: | Treasury Metals Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$3,478,396
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Agent: | Non-brokered
|
| Settlement date: | Dec. 6
|
| Stock symbol: | Toronto: TML
|
| Stock price: | C$0.72 at close Dec. 3
|
| Market capitalization: | C$27.46 million
|
|
|
| Units
|
| Amount: | C$2,665,045
|
| Units: | 4,845,536
|
| Price: | C$0.55
|
| Warrant strike price: | C$0.70
|
|
|
| Flow-through units
|
| Amount: | C$813,351
|
| Units: | 1,161,930
|
| Price: | C$0.70
|
| Warrant strike price: | C$1.00
|
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