TSX: TML
OTCQX: TSRMF
TORONTO, March 11, 2020 /PRNewswire/ - Treasury Metals
Inc. (TSX: TML) and Platinex Inc. (CSE: PTX)
("Platinex") have entered into a non-binding heads of
agreement between the two companies (the "Transaction") to
create the largest combined gold focused property package in the
Shining Tree District, in northern Ontario. The highlights of the agreement are,
namely:
- Treasury will transfer a 100% interest in its 280 claim unit
5,045 Ha. (12,466 ac.) Shining Tree Fawcett East property (the
"Shining Tree East Property") to Platinex, to create the
largest combined gold focused property package in the Shining Tree
District, in northern Ontario (the
"Shining Tree Property"). The Shining Tree Property is
located on 21 kilometres of the Tyrrell-Ridout Deformation Zone
which also hosts both IAMGOLD's Côté Lake gold deposit and Pan
American's Juby deposit;
- Treasury will transfer to Platinex royalties comprising four
Ontario and Chile based exploration projects covering
gold, PGM's and base metal opportunities (the "Royalties")
to enhance Platinex's existing royalty portfolio;
- In consideration for acquiring the Shining Tree East Property
and the Royalties, Platinex will issue to Treasury 12,500,000
common shares ("Consideration Shares") of Platinex and
5,000,000 non-transferable common share purchase warrants
("Consideration Warrants") of Platinex. Each
Consideration Warrant will be exercisable at a price of
$0.05 per share for a period of three
years from the date of issuance, provided that if the closing price
of the common shares of Platinex ("Platinex Shares") is
equal to or greater than $0.30 for a
period of 20 consecutive trading days, Platinex will have the right
to increase the exercise price of the Consideration Warrants by
giving a written notice to Treasury that the exercise price shall
be increased to $0.15 per share on
the date that is 10 days from the date of such notice. In addition,
Treasury shall not exercise the Consideration Warrants if such
exercise would result in Treasury owning 20% or more of the issued
and outstanding Platinex Shares;
- Treasury will contribute operational efficiencies between the
two companies with a view to provide effective management going
forward to advance the Shining Tree Property;
- Treasury will undertake to support Platinex's management for a
two-year period in shareholder votes;
- Platinex will grant Treasury a first right of refusal to
participate in further financings of Platinex shares for a period
of two years to maintain its percentage interest; and
- Treasury will have the right to appoint a nominee to the
board of directors of Platinex.
Completion of the Transaction is subject to further due
diligence and the parties entering into a formal agreement on or
before March 31, 2020.
Mr. James R. Trusler, Chairman of
Platinex, stated, "It's exciting to have the close working
relationship with Treasury Metals. With the addition of the Shining
Tree East Property, Platinex's Shining Tree Property holdings will
total 19,895 Ha (49,304ac). The expanded property will now adjoin
the Pan American property in Tyrrell Township which hosts the 4
million ounce Juby gold deposit and close proximity along east west
structures to the Coté Lake gold project. Significant potential for
commercial gold deposits has been revealed in past exploration on
Platinex's property and management is especially looking forward to
examining the underexplored 21 km stretch of the Tyrrell Ridout
deformation zone which is the key locus for gold mineralization in
Shining Tree and underlies the property. Platinex will seek further
consolidation and strategic initiatives within the district."
Mr. Greg Ferron, Treasury Metals
Inc.'s CEO, stated that, "The consolidation of the Shining Tree
properties provides multiple benefits and efficiencies between the
two groups. We are very excited to make use of the Platinex team's
significant wealth of knowledge of the area to see them develop our
underutilized project in conjunction with theirs. The Transaction
makes for a compelling land package in a very prospective
exploration camp that is starting to see a great deal of
activity."
Qualified Person
Technical information in this press release has been reviewed
and approved by Adam Larsen, P. Geo,
who is the qualified person under the definitions established by
National Instrument 43-101.
To view further details about the Goliath Gold Project, please
visit the Company's website at www.treasurymetals.com.
Follow us on Twitter @TreasuryMetals
About Treasury Metals Inc.
Treasury Metals Inc. is a gold focused exploration and
development company with assets in Canada and is listed on the Toronto Stock
Exchange ("TSX") under the symbol "TML" and on the OTCQX® Best
Market under the symbol "TSRMF".
Forward-looking Statements
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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SOURCE Treasury Metals Inc.
