Treasury Metals Closes Equity Financing and Enters Into Facility Agreement With RMB Resources Inc.

TSX: TML

TORONTO, Dec. 20, 2013 /CNW/ - Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:TML) is pleased to announce that it has closed its previously announced brokered placement of flow-through common shares ("Flow-Through Shares") (see the news release dated December 4 and 18, 2013, respectively). 8,315,500 Flow-Through Shares were sold at an issue price of $0.40 per Flow-Through Share for aggregate gross proceeds of $3,326,200 (the "Offering"). The Offering was completed by a syndicate of agents led by Secutor Capital Management Corporation and included Canaccord Genuity Corp.

In consideration for the services of the agents in connection with the Offering the Company has paid a cash commission equal to 7% of the gross proceeds received from the sale of the Flow-Through Shares and has issued an aggregate of 201,250 non-transferrable broker warrants, with each broker warrant being exercisable to acquire one common share of the Company at a price of $0.50 per share for a period of 24 months from the closing of the Offering.

Treasury Metals intends to use the net proceeds of the Offering for the advancement of the Company's Goliath Gold Project as well as for general working capital purposes.

The Flow-Through Shares issued pursuant to the Offering will be subject to a four-month hold period under applicable securities laws in Canada.

A material change report in connection with the Offering will be filed less than 21 days before closing of the Offering. This shorter period is reasonable and necessary in the circumstances as the Company wished to complete the Offering in a timely manner.

The facility agreement (the "Facility Agreement") with RMB Resources Inc. ("RMB") that was previously announced on November 15 and December 4, 2013 has been executed today between the Company and RMB. The feasibility funding facility (the "Facility") granted to the Company under the Facility Agreement is expected to be drawn in January 2014 once all conditions precedent are satisfied. RMB issued final approval of its mandate to arrange for and provide the Facility on December 4, 2013.

"We are pleased to see such strong retail investor interest and participation by a number of new and existing institutional investors in the equity financing," stated Martin Walter, Treasury's President and Chief Executive Officer. "The equity financing, the RMB facility and our ongoing royalty stream provides us with the financial resources to accelerate and complete the important feasibility study, mine permitting stage and additional exploration programs on the Goliath Gold Project in Northwestern Ontario."

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.

About Treasury Metals Inc.:

Treasury Metals Inc. is a Toronto-based, TSX-listed mining exploration and development company developing and permitting the Goliath Gold Project located in Northwestern Ontario. The Company's flagship Goliath Gold Project is a high-grade gold resource that demonstrates strong market fundamentals, access to excellent infrastructure and a skilled local workforce. Treasury Metals has commenced the mine permitting process at its solely owned project with the vision of a combination of surface and underground mining methods and one of four projects advanced to the permitting stage in the province. Established in 2008, Treasury Metals operates corporate headquarters in Toronto and a project office at the Goliath Gold Project.

To view further details about the Goliath Gold Project, please visit the Company's website at www.treasurymetals.com.

Forward-looking Statements

This press release contains forward-looking statements such as the expected use of the net proceeds from the private placement, our future financial condition, business plans and objectives, results of operations and business. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance or events and involve risks and uncertainties that are difficult to predict and may be beyond Treasury Metals' control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth herein and in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such 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 law. 

SOURCE: Treasury Metals Inc.

Contact:
Greg Ferron
Vice President, Corporate Development
T: 1.416.214.4654
[email protected]

Martin Walter
President and Chief Executive Officer
T: 1.416.214.4654
[email protected]