Treasury Metals Reports Pico Machay Gold Project Acquisition Update
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 08/02/11 -- Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX: TML) announced today that the Company and Pan American Silver Corp. ("Pan American") have agreed to amend certain terms of the previously announced proposed acquisition by the Company of the Pico Machay Gold Project in Peru (the "Transaction"). In particular, the parties have agreed to amend the terms of Definitive Agreement dated May 18, 2011 (the "Agreement") to extend the closing date of the Transaction to August 31, 2011. In addition, the Company has the option to satisfy up to US$10.5 million of the US$21 million cash portion of the purchase price through the issuance of a secured promissory note to Pan American due December 31, 2011, subject to the right of the Company to pre-pay at any time (the "Note"). The Company will determine whether to finance with the Note based on prevailing equity market conditions.
Martin Walter, President and Chief Executive Officer, commented, "Amending the terms of the Transaction gives the Company greater flexibility to finance in a manner that is in the best interests of the Company's stakeholders. We are very familiar with the Pico Machay Gold Project and this Transaction will bring shareholders additional exploration upside and near-term production. In this strong gold market we are well positioned to become a low-cost producer in a mining friendly jurisdiction like Peru. Treasury Metals remains committed to its multi-asset growth strategy in the Americas, with near-term production potential at Pico Machay in Peru, and ongoing exploration at the Goliath Gold Project in Dryden, Ontario."
Under the terms of the Note, the Company must pay a fixed commitment fee in an amount equal to the interest that would accrue on the principal amount of the Note from the date of issuance to December 31, 2011 if the principal amount was subject to an annual interest rate of 12% compounded monthly.
The Transaction remains conditional upon, among other things, the receipt of all required regulatory approval, including the approval of the Toronto Stock Exchange, and the completion by the Company of an equity offering to fund the cash consideration payable to Pan American.
The Company has posted on its website an updated corporate presentation which includes further details of the Pico Machay Gold Project.
To learn more about Treasury Metals, please visit the Company's website at .
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.
Contacts:
Treasury Metals Inc.
Greg Ferron
Vice President, Corporate Development
1.416.214.4654
Treasury Metals Inc.
Martin Walter
President and CEO
1.416.214.4654
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 02.08.2011 - 11:00 Uhr
Sprache: Deutsch
News-ID 40570
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contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Mining & Metals
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