Treasury Metals Inc.
TSX : TML

Treasury Metals Inc.

December 06, 2010 09:04 ET

Treasury Metals Closes $3.5M Private Placement and Appoints New CEO

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2010) - Treasury Metals Inc. ("Treasury" or the "Company") (TSX:TML) is pleased to announce the appointment of Martin Walter as Chief Executive Officer (CEO) of the Company. Dr. Scott Jobin-Bevans, the former President and CEO, will remain with the Company in the capacity of President and will continue to serve as a Director.

Mr. Walter brings more than 15 years of operational and international mineral and mine development experience to the Company. He has worked on numerous precious metals projects worldwide as a consulting geologist and has held a number of executive level positions, including at Aquiline Resources Inc., where he served as Executive Vice President and Director. He is currently serving as a director of Crown Point Ventures Ltd. where he has been instrumental in building the assets of the company and the production team in Argentina. Mr. Walter holds a degree in geology from Ballarat University, Australia as well as an MBA from the University of Toronto.

As President of Treasury Metals, Dr. Jobin-Bevans will continue to oversee the day to day operations of Company, including the development and expansion of the Goliath Gold Project, the Company's flagship property located in Northwestern Ontario. In less than 3 years, Dr. Jobin-Bevans has advanced the Goliath Gold Project from an historical resource to pre-feasibility, completing an NI 43-101 compliant Mineral Resource Estimate and a Preliminary Economic Assessment as the Goliath Gold Project moves towards mine feasibility.

"On behalf of the Board of Directors, I am delighted to welcome Martin Walter as CEO and to add his expertise in new project generation and experience in developing projects", commented Marc Henderson, Chairman. "Scott has done an excellent job of building and growing the Company. His work in advancing the Goliath Gold Project has moved us closer to reaching our overall goal of becoming a mid-tier gold producer. Looking forward, we will continue to strengthen our management team and add new skills as the Company works to transition from an exploration company to a developer. With the addition of Mr. Walter, I believe we can be even more opportunistic in evaluating other near-term production projects that are accretive to our property portfolio and bring us closer to our goal of pouring gold."

In addition, Treasury Metals is pleased to announce that it has completed a non-brokered private placement (the "Offering") of 1,161,930 units (the "Flow-Through Units") of the Company at a price of $0.70 per Flow-Through Unit and 4,845,536 units (the "Units") of the Company at a price of $0.55 per Unit, for aggregate gross proceeds of $3,478,395. The net proceeds of the Offering are expected to be used to continue exploring and developing the Company's Goliath Gold Project and for general corporate purposes.

Each Flow-Through Unit consists of one common share of the Company issued on a flow-through basis and one-half of one common share purchase warrant (a "Flow-Through Warrant"). Each whole Flow-Through Warrant entitles the holder to purchase one common share of the Company on a non-flow-through basis at an exercise price of $1.00 for a period of 18 months from the closing date of the Offering. In the event that the common shares of the Company trade at a price per common share of $1.50 or greater for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Flow-Through Warrants by giving notice to the holders and, in such case, the Flow-Through Warrants will expire on the 30th business day after the date on which such notice is given by the Company.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $0.70 per Warrant Share for a period of 18 months from the closing date of the Offering. In the event that the common shares of the Company trade at a price per common share of $1.25 or greater for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders and, in such case, the Warrants will expire on the 30th business day after the date on which such notice is given by the Company.

The Company paid finder's fees of $33,330 and issued 140,100 common shares at a deemed price of $0.55 per share to certain parties with respect to services provided to the Company in connection with the Offering.

About Treasury Metals

Treasury Metals Inc. is a Canadian mining company that is focussed on expanding the Company's gold resources and developing its 100% owned flagship Goliath Gold Project located in the Kenora Gold District of Northwestern Ontario. The NI 43-101 compliant gold resource contains non-diluted underground Indicated Resources of 490,000 tonnes grading 5.7 g/t Au (90,000 ounces) and Inferred Resources of 5,200,000 tonnes grading 4.4 g/t Au (740,000 ounces) and surface Indicated Resources of 2,900,000 tonnes grading 1.9 g/t Au (180,000 ounces) and Inferred Resources of 5,400,000 tonnes grading 1.1 g/t Au (190,000 ounces). Treasury also receives revenue from a Net Smelter Royalty they hold on Goldgroup Mining Inc.'s Cerro Colorado Mine located in Mexico.

Technical information in this press release has been reviewed and approved by Scott Jobin-Bevans, Treasury's President, who is a qualified person under the definitions established by National Instrument 43-101.

The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the CIM Exploration Best Practices Guidelines. The drill core is sawn in half with one half of the core samples shipped to Accurassay Laboratories in Thunder Bay, Ontario. The other half of the core is retained for future assay verification. Other QA/QC procedures include the insertion of blind blanks and standards for every tenth sample in the sample stream. Blind quarter core duplicates were assayed for 5% of the samples. The laboratory re-assays at least 10% of all samples (pulps and rejects) and additional checks may be run on anomalous values. Gold analysis is conducted by lead collection, fire assay with atomic absorption or gravimetric finish on a 30 gram sample. Check assays by a secondary lab will be completed in the future.

For additional information on Treasury Metals and its projects, 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 laws.

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