Treasury Metals (TML-T) Acquire Goldeye Explorations (GGY-V)
July 11, '16 - NR
Goldeye Explorations Limited Acquisition:
The Company is pleased to announce that it has agreed to a proposal with respect to the acquisition of Goldeye Explorations by Treasury.
Goldeye's principal asset is the Weebigee Project, a high-grade gold project located near Sandy Lake in Northwestern Ontario. Goldeye's most recent exploration program, consisting of a 2,200 metre shallow drill program, reported significant gold results (see press release dated April 9, 2014 available at www.goldeye.ca or www.sedar.com). The Weebigee Project is subject to an earn-in option agreement between GPM Metals Inc./Lago Dourado Minerals Ltd. and Goldeye.
The acquisition will provide Treasury with a second high-quality asset in Northwestern Ontario, one that is low cost and allows shareholders to participate in the success of this exciting gold district at the heart of the unexplored Sandy Lake greenstone belt.
The Proposal contemplates that Treasury and Goldeye will enter into a business combination pursuant to a structure to be mutually agreed (the "Proposed Transaction").
Pursuant to the Proposed Transaction, consideration shall consist of the issuance of common shares in the capital of Treasury for 100% of the issued and outstanding common shares of Goldeye (the "Shares") at an exchange ratio of 0.100 Treasury Shares for each Goldeye common share held (the "Consideration"). On that basis, the Consideration in respect of the Proposed Transaction equates to a deemed price of C$0.065 per Goldeye common share based on the closing price of the Shares on July 8, 2016 and represents a 44.4% premium to the closing price of Goldeye common shares on July 8, 2016 of C$0.045. In total, Treasury will issue approximately 5,005,359 common shares.
Treasury and Goldeye have agreed to an exclusivity period until August 1, 2016 during which due diligence will be conducted and the Definitive Agreement finalized. In the event that Goldeye terminates the Proposal on or prior to August 1, 2016 for any reason, Goldeye shall pay to Treasury a one-time break-fee in the amount of C$250,000. The transaction is subject to all necessary shareholder, regulatory, and stock exchange approvals. Please see Goldeye's press release issued today for additional details.
To view further details about the Goliath Gold Project, please visit the Company's website at www.treasurymetals.com.
Technical information in this press release has been reviewed and approved by Mark Wheeler, P. Eng., Director of Projects regarding Mine Permitting and Technical content and Paul Dunbar, Exploration Manager, regarding exploration content who are Qualified Persons for the Goliath Gold Project under the definitions established by National Instrument 43-101.
SOURCE Treasury Metals Inc.
Greg Ferron, Vice President, Corporate Development,
T: 1.416.214.4654,
greg@treasurymetals.com ;
Norm Bush, Vice President Goliath Project,
T: 1.807.938.6961,
norm@treasurymetals.com
|
