Treasury Metals Announces $10 Million Bought Deal Financing

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TORONTO, June 15, 2020 (GLOBE NEWSWIRE) -- Treasury Metals Inc. (TSX: TML) (“Treasury” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Haywood Securities Inc. (collectively, the “Underwriters”) in connection with a “bought deal” private placement financing (the “Offering”) of an aggregate of 27,800,000 subscription receipts (the “Subscription Receipts”) at a price of $0.36 per Subscription Receipt (the “Issue Price”) for gross proceeds of $10,008,000.

The Offering is being completed in connection with the Company’s previously announced transaction (the “Transaction”) wherein Treasury will acquire all of the outstanding common shares of Tamaka Gold Corporation, a wholly owned subsidiary of First Mining Gold Corp., which holds a 100% interest in the Goldlund Gold Project (“Goldlund”), located immediately adjacent to Treasury’s Goliath Gold Project (“Goliath”) in Northwestern Ontario. Please refer to the Company’s press release dated June 3, 2020 for further information regarding the Transaction.

The Subscription Receipts will be issued pursuant to a subscription receipt agreement (the “Subscription Receipt Agreement”) to be entered into by the Company, the Underwriters, and a licensed Canadian trust company as subscription receipt agent to be agreed upon. Pursuant to the Subscription Receipt Agreement, the gross proceeds from the Offering (less 50% of the Underwriters’ cash commission and all of the Underwriters’ expenses) (the “Escrowed Funds”) will be held in escrow pending satisfaction of certain conditions, including, amongst others, (a) the satisfaction or waiver of each of the conditions precedent to the Transaction; and (b) the receipt of all required shareholder and regulatory approvals in connection with the Transaction and the Offering, including the conditional approval of the Toronto Stock Exchange (“Escrow Release Conditions”). If the Escrow Release Conditions have not been satisfied on or prior to the date that is 90 days after the closing date of the Offering, the holders of Subscription Receipts will receive a cash amount equal to the Issue Price of the Subscription Receipts and any interest that has been earned on the Escrowed Funds.