|March 31, 2016|
Treasury Metals Announces US$4.4 Million Loan Transaction with Loinette Leasing and Extract Capital
TORONTO, March 31, 2016 /CNW/ - Treasury Metals Inc. ("Treasury" or the "Company") is pleased to announce it has entered into a binding term sheet with Loinette Company Leasing Ltd. ("Loinette") and Extract Capital Master Funds Ltd. ("Extract") (together, the "Lenders"), with Extract acting as agent to the Lenders, to arrange a buy-out and increase of the existing loan facility with RMB Australia Holdings Limited ("RMB") due on June 20th, 2016 in respect of which CAD$5.0 million (approx. US$3.78 million) is currently outstanding and to further advance the project feasibility study and permitting for the Goliath Gold Project. The total financing to be provided by the Lenders (the "Loan"), including the amount to buy-out RMB, is US$4,400,000 (approx. CAD$5.7 million).
The closing date of the Loan is targeted to be in approximately 30 days (the "Closing Date") and remains subject to customary conditions and definitive legal documentation.
The key terms of the Loan are as follows:
In conjunction with this transaction, the Lenders will be assigned the security and warrants currently held by RMB.
The Loan provides the Lender a production fee on gold and silver produced at the Goliath Gold Project. The Company will have the option to repurchase the production fee without repayment of the Loan during the first nine months at US$350,000.
Alternatively, concurrently with the repayment of the Loan in full, the Company will also have the option to repurchase the production fee for a lump sum payment equal to:
The production fee is based on US$10 per ounce of gold and US$0.125 per ounce of silver produced from the life of the Goliath Gold Project.
The Loan, the issuance of the warrants and the issuance of the common shares are subject to all necessary regulatory approvals, including approval of the Toronto Stock Exchange.
Treasury continues to advance mine permitting, technical engineering and environmental programs in conjunction with the project feasibility study of the Goliath Gold Project.
To view further details about the Goliath Gold Project, please visit the Company's website at www.treasurymetals.com.
About Loinette and Extract:
Loinette is an asset-based funding solutions company with a strong bias towards mine equipment finance and Extract is a leading natural resource fund manager with a concentration in the junior mining sector.
SOURCE Treasury Metals Inc.
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