TSX: TML OTCQX:
TSRMF
TORONTO, July 16, 2020 /CNW/ - Treasury Metals Inc.
(TSX: TML) ("Treasury" or the "Company") and Platinex Inc. are
pleased to announce that pursuant to the terms of the mining
investment agreement (the "Purchase Agreement") dated July 15, 2020 between Treasury, and Treasury's
wholly-owned subsidiary Goldeye Explorations Limited, and Platinex
Inc., the Company has sold to Platinex an aggregate of 208
unpatented mining claims located in the Shining Tree District,
Northern Ontario (the "Mining
Claims") and three net smelter royalties (the "Royalties").
The Mining Claims total approximately 5,045 Ha. (12,466 ac.) and
are located adjacent to Platinex's Shining Tree property.
With this acquisition, Platinex has created the largest combined
gold focused property package in the Shining Tree District,
Northern Ontario. 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 Caldas Gold's Juby
deposit.
In consideration for acquiring the Mining Claims and the
Royalties (the "Acquisition"), Platinex issued 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
entitles Treasury to purchase one common share of Platinex at a
price of $0.05 per share for a period
of 24 months from the date of issue. If Treasury exercises the
Consideration Warrants on or before September 1, 2020, it will receive an additional
non-transferable common share purchase warrant (a "Secondary
Warrant") for each Consideration Warrant exercised. Each Secondary
Warrant entitles the holder to purchase one common share of
Platinex at a price of $0.20 per
share for a period of 24 months from the date of the closing of the
Acquisition. The Secondary Warrants provide that Treasury shall not
exercise the Secondary Warrants if such exercise would result in it
owning 20% or more of the issued and outstanding common shares of
Platinex.
Mr. Greg Ferron, Treasury Metals Inc.'s CEO, stated that,
"The consolidation of the two Shining Tree properties provides
multiple benefits to both parties and gives Treasury's shareholders
a toehold equity position in another exciting gold district in
Ontario. We look forward to the
exploration results and the significant wealth of knowledge Jim and
his team have of this highly prospective exploration camp. The
recent acquisition of the neighboring Juby gold deposit by
Caldas Gold demonstrates the
increased activity in the district."
Mr. James R. Trusler, Chairman of
Platinex, stated, "The supportive relationship with Treasury Metals
brings an extended marketing presence to advancing the Shining Tree
property expeditiously. We look forward to being able to have
access to more exploration funding to back exploration of the
recently recognized 21 km portion of the Ridout Tyrrell Deformation
Zone and other high potential prospects on the property."
The parties have agreed that the Consideration Shares will be
placed in a voluntary escrow agreement, with 25% (3,125,000
Consideration Shares) to be released on the 12th, 15th, 18th and
24th month anniversaries of the closing of the Acquisition.
Treasury has agreed to support and vote for the recommendations of
Platinex management at all shareholder meetings of Platinex held
the time that the Consideration Shares are held in escrow.
The Royalties consist of a 100% interest in three royalty
agreements, consisting of (i) a 2% net smelter royalty in respect
of the Sonia-Puma Property held by Minera Goldeye Chile Limitada;
(ii) a 1% net smelter royalty in respect of nine mineral claims
forming part of the McFaulds Lake Project held by AurCrest
Resources Inc.; and (iii) a 2% net smelter royalty in respect of 29
mineral claims located in MacMurchy Township, Ontario held by Golden Harp Resources Inc.
The Purchase Agreement also provides Treasury with the right to
appoint one nominee to the board of directors of Platinex.
To view further details about Treasury Metals Inc. and 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.
SOURCE Treasury Metals Inc.