Treasury Metals Inc. is set to raise $4 million in funding through a non-brokered private placement, as the company announced its intention to issue up to 28.6 million units at a price of $0.14 each. This strategic financial move is designed to fuel the company's growth and development projects.
Each unit on offer comprises one common share in Treasury Metals' capital and half of a purchase warrant. Investors holding these warrants will have the opportunity to fully exercise them at a rate of $0.25 for each warrant within a three-year period following the closure of the offering.
The proceeds from this private placement are earmarked for advancing the company's Goliath Gold Complex, which is conveniently located near the Trans-Canada Highway in Northwestern (NASDAQ:NWE) Ontario. Additionally, funds will support other ventures such as the Weebigee-Sandy Lake Joint Venture and the Gold Rock property.
It is anticipated that insiders of Treasury Metals will participate in the offering, which is considered a related party transaction. A material change report will be filed before the closing of this transaction, which is expected to be less than three weeks prior. Notably, due to the size of the transaction, it does not require a formal valuation or minority shareholder approval.
Securities issued in this private placement will be subject to a four-month hold period as per Canadian regulations following the closing date. Additionally, sales in the United States are restricted under the U.S. Securities Act unless exemptions are available.
Treasury Metals' initiative to secure additional capital demonstrates its commitment to further developing its mining projects and enhancing shareholder value. The proposed private placement is scheduled for Wednesday, December 14, 2023, indicating a strategic plan for end-of-year financial strengthening.
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