Treasury Metals Announces Share Issuance
TORONTO, ONTARIO–(Marketwire – Aug. 26, 2008) –
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Treasury Metals Inc. (“Treasury Metals”) (TSX:TML) announced today that it has issued an aggregate of 3,286,975 common shares to Corona Gold Corporation (“Corona”) and Teck Cominco Limited (“Teck Cominco”), representing 12.27% of the number of shares of Treasury Metals outstanding after giving effect to such issuance. The issuance is in satisfaction of the final installment of the purchase price payable by Treasury Metals pursuant to the purchase agreement dated September 24, 2007 between such parties with respect to the acquisition of the Thunder Lake property previously held by Corona and Teck Cominco. Under the terms of the purchase agreement, Corona and Teck Cominco will receive, for no additional consideration, that number of common shares of Treasury Metals sufficient for them to maintain their respective ownership interests in Treasury Metals until such time as Treasury Metals has received aggregate proceeds from the issuance of additional common shares of $2,348,004.
Following such share issuance, Corona holds 2,678,871 common shares in the capital of Treasury Metals, being 10% of the issued and outstanding Treasury Metals common shares. Corona intends to hold its common shares of Treasury Metals for investment purposes. Corona may, subject to market conditions and its ongoing evaluation of its investment in the common shares of Treasury Metals, make additional investments in or dispositions of securities of Treasury Metals, including additional purchases or sales of common shares. Corona will be filing an early warning report as contemplated by National Instrument 62-103 of the Canadian Securities Administrators in connection with its acquisition of common shares of Treasury Metals. Any person who wishes to obtain a copy of such report may contact Orest Zajcew, chief financial officer of Corona, by telephone at (416) 482-8606.
Treasury Metals and Laramide Resources Ltd. (“Laramide”) (TSX:LAM) also announced that Laramide distributed 16,459,167 common shares in the capital of Treasury Metals to the shareholders of record of Laramide at the close of business on August 21, 2008 (the “Record Date”) pursuant to its previously announced return of capital. Pursuant to the return of capital, shareholders of record of Laramide on the Record Date received one Treasury Metals common share for each 3.8 Laramide common shares held by them, with fractional shares rounded down to the nearest whole number.
Following the return of capital, Laramide now holds 4,108,091 Treasury Metals common shares, being approximately 15% of the issued and outstanding Treasury Metals common shares. Laramide intends to hold its common shares of Treasury Metals for investment purposes. Laramide may, subject to market conditions and its ongoing evaluation of its investment in the common shares of Treasury Metals, make additional investments in or dispositions of securities of Treasury Metals, including additional purchases or sales of common shares.
About Treasury Metals
Treasury Metals is a mineral exploration and development company with a growth-orientated strategy focused on the acquisition and development of precious and base metals assets in Canada. Treasury Metals’ activities are currently focused on two exploration projects: the Goliath Project, an advanced stage, high-grade gold deposit near Dryden, Ontario; and the Lara Polymetallic Project, an advanced stage, high-grade base and precious metal project on Vancouver Island, British Columbia. In addition to these projects, Treasury Metals holds rights to receive a net smelter royalty in connection with the Sierra Minerals Cerro Colorado mine located in Mexico and various investments acquired from Laramide.
Laramide Resources is engaged in the exploration and development of high quality uranium assets. Its wholly owned uranium assets are in Australia and the United States. Laramide’s portfolio of advanced uranium projects have been chosen for their production potential. Its flagship project is Westmoreland, in Queensland, Australia, one of the largest projects currently held by a junior mining company. Its U.S. assets include La Jara Mesa in Grants, New Mexico and La Sal in the Lisbon Valley district of Utah. Its portfolio also includes joint venture, strategic equity positions and royalty participation in uranium development and exploration companies that provide additional geographic diversification and uranium exposure for shareholders.
The reorganization and spin-off of certain of Laramide’s non- uranium assets to Treasury Metals is designed to improve the identification and valuation of specific Laramide properties, to enhance Laramide’s ability to divest specific properties through simpler corporate ownership, to enter into strategic joint venture agreements, and to enable Laramide to separately finance and develop its various assets, selectively reducing stock dilution.
Securities regulators encourage companies to disclose forward- looking information to help investors understand a company’s future prospects. This press release contains statements about our future financial condition, results of operations and business. These are “forward-looking” because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
(c) 2008 Marketwire. Provided by ProQuest LLC. All rights Reserved.