|August 31, 2011|
Treasury Metals Extends Closing Date of Pico Machay Acquisition
TORONTO, ONTARIO--(Aug. 31, 2011) - Treasury Metals Inc. (TSX:TML) (the "Company" or "Treasury Metals") announced today that the Company and Pan American Silver Corp. ("Pan American") have agreed to extend the closing date of the proposed acquisition of the Pico Machay Gold Project ("Pico Machay") until September 21, 2011. All other terms and conditions relating to the share purchase agreement, as amended, remain the same.
Treasury Metals continues to pursue financing alternatives to fund the acquisition of Pico Machay. This includes the recently filed preliminary prospectus in connection with a best efforts offering of common shares co-led by Cormark Securities Inc. and Canaccord Genuity Corp.
"The Pico Machay acquisition brings near-term production potential and cash-flow to the Company. In addition, we will continue to expand and develop the Goliath Gold Project in northwestern Ontario into a multi-million ounce deposit," commented Martin Walter, President and Chief Executive Officer of Treasury Metals Inc. "The Goliath Gold Project has a number of near-term milestones such as completion of the 50,000-metre diamond drilling program and a revised resource expected in the fourth quarter of this year. In this strong gold market, we are well positioned to become a low-cost producer in Peru with the Pico Machay acquisition and with ongoing exploration upside at the Goliath Gold Project in Dryden, Ontario."
The Transaction remains conditional upon, among other things, the receipt of all required regulatory approval, including the approval of the Toronto Stock Exchange, and the completion by the Company of a financing to fund the cash consideration payable to Pan American.
The Company has posted on its website an updated corporate presentation which includes further details of the Pico Machay Gold Project at www.treasurymetals.com.
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.
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