Treasury Metals Announces Receipt for Final Prospectus and Automatic Exercise of Special Warrants into Shares
TSX: TML OTCQX: TSRMF
TORONTO, May 7, 2021 /CNW/ – Treasury Metals Inc. (TSX: TML) (“Treasury” or the “Company”) is pleased to report that it has filed its final short form prospectus dated May 6, 2021 (the “Prospectus”) and obtained a receipt (the “Final Receipt”) with the securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario (collectively, the “Qualifying Jurisdictions”), in connection with its previously announced and completed offering whereby a syndicate of dealers, co-led by Haywood Securities Inc., Cormark Securities Inc., and Sprott Capital Partners LP, and including PI Financial Corp., iA Private Wealth Inc. and Paradigm Capital Inc., agreed to offer: (i) on a bought deal private placement basis, an aggregate of approximately 10.6 million non-flow-through special warrants (the “NFT Special Warrants”) at a price of $0.95 per NFT Special Warrant; and (ii) on a best efforts agency basis, approximately 6.8 million flow-through special warrants (the “FT Special Warrants” and together with the NFT Special Warrants, the “Special Warrants”) at a price of $1.10 per FT Special Warrant, for total gross proceeds to the Company of approximately $17.6 million (the “Offering”). The Prospectus qualifies the distribution of the 17,451,579 common shares in the capital of the Company (each a “Common Share”) underlying the Special Warrants.
In accordance with the terms of a special warrant indenture dated as of March 10, 2021, between the Company and TSX Trust Company, as special warrant agent, each Special Warrant will be automatically exercised into one Common Share on May 13, 2021, being the fifth business day after the date of obtaining the Final Receipt.
The completion of the Offering was previously announced by the Company on March 10, 2021. A copy of the Prospectus and the press release announcing the completion of the Offering are each available under the Company’s SEDAR profile at www.sedar.com.
Magna Gold pays $5M (U.S.) to Argonaut Gold
Magna Gold Corp. has paid $5-million (U.S.) to Argonaut Gold Inc. in relation to the acquisition of the San Francisco mine.
Pursuant to a definitive share purchase agreement dated March 5, 2020, as amended April 24, 2020, between Mexican subsidiaries of Argonaut and Magna for the acquisition of the San Francisco Mine, Magna was required to pay US$5,000,000 plus a working capital differential by May 6, 2021. Magna has completed the US$5,000,000 payment from working capital and provided a promissory note for the remaining balance of US$2,675,000 to be paid in four monthly installments commencing July 6, 2021 and ending October 6, 2021. The promissory note bears uncompounded interest at a rate of 5% per annum.
Magna President and CEO Arturo Bonillas commented: “We are very pleased to be fulfilling our obligations to Argonaut. With this payment behind us we are looking forward to reaching a steady rate of production at the San Francisco Mine and strengthening our balance sheet primarily through the cash flow generated by the operations.”
Aquila Resources Announces First Quarter 2021 Financial Results
Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) (“Aquila” or the “Company”) announces the filing of its financial results for the first quarter ended March 31, 2021. All amounts, unless indicated, are reported in US dollars.
Guy Le Bel, President & CEO, commented, “Since joining Aquila as President & CEO in February, my focus has been making an already strong project even better. I am pleased with the progress our team is making on the optimized Back Forty Project Feasibility Study, which will demonstrate reduced surface impact and a longer mine life for the benefit of all stakeholders. I continue to be impressed by Michigan as a jurisdiction, notably highlighted by last week’s Senate resolution in support of responsible mining in the State. We look forward to advancing the Back Forty though its next phase of development, while at the same time evaluating opportunities to realize additional value for shareholders through the monetization of our non-core assets.”
FIRST QUARTER HIGHLIGHTS
- As at March 31, 2021, Aquila had cash of $0.8 million and negative working capital of $1.8 million. This compared to cash of $1.8 million and negative working capital of $0.8 million at December 31, 2020. The decrease in working capital is primarily due to permitting and legal activities at its Back Forty Project. The Company is focused on securing financing in the near-term.
- On February 1, 2021, the Company appointed Guy Le Bel as President & CEO of Aquila. Barry Hildred transitioned to the role of Executive Chair of the Board of Directors and Ted Munden, outgoing Chair of the Board of Directors, was appointed to the position of Lead Director. Mr. Le Bel brings more than 35 years of experience in business and project development, strategic and financial planning, and permitting in the Americas to Aquila.
- In March 2021, Aquila announced that it entered into definitive agreements (the “2021 Stream Agreement Amendments”) with a subsidiary of Osisko Gold Royalties Ltd (“OGR”) to amend certain terms of the Gold Stream and Silver Stream in order to provide additional flexibility. Under the terms of the 2021 Stream Agreement Amendments, OGR agreed to adjust certain milestone dates under the Gold Stream and the Silver Stream to align the streams with the current project development timeline.
- In March 2021, Aquila engaged Osisko Technical Services (“OTS”) to lead an optimized feasibility study (the “Feasibility Study”) for the Back Forty Project. OTS’ technical team has a proven track record of project execution. Aquila will leverage the team’s combined engineering, permitting, construction and operating expertise to unlock value and advance the Back Forty Project through its next phase of development.
- In January 2021, an administrative law judge for the Michigan Office of Administrative Hearings and Rules (the “Administrative Law Judge”) issued a decision denying the prior issuance of the Back Forty Wetlands Permit, which had been previously issued by the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”). Aquila has appealed the Administrative Law Judge’s decision to EGLE’s environmental review panel (the “Panel”).
- In January 2021, the Michigan Public Service Commission issued a decision rejecting Alger Delta Power Cooperative’s objections to Upper Michigan Energy Resources Corporation’s (UMERC) filing of its Notice of Intent to Serve the Back Forty Mine. That decision was reaffirmed by the Commission in its April order addressing Alger Delta’s motion for reconsideration. The Company believes this decision paves the way for Aquila to choose whichever electrical service provider it deems best for the Back Forty Project.
POST QUARTER HIGHLIGHTS
- On April 28, 2021, the Michigan State Senate unanimously approved resolution SR0016: A resolution to express support for mining and the mining industry and encourage the Governor, state agencies, local governments, members of the public, and labor organizations to support mining by taking certain actions (the “Resolution”). The Resolution passed with bipartisan support.
- On April 23, 2021, a judge for the Ingham County Circuit Court in the State of Michigan (“Circuit Court Judge”) granted a motion to reconsider in connection with the original Back Forty Mining Permit. By granting the motion, the Circuit Court Judge is allowing the Administrative Law Judge, who is currently overseeing the contested case related to the amended Mining Permit, the opportunity to consider certain testimony from the Wetland Permit case. In December 2020, the same Circuit Court Judge upheld the final decision of EGLE to issue the original Back Forty Mining Permit. The recent decision by the Circuit Court Judge does not reverse the earlier decision or otherwise deny the Mining Permit. Aquila believes that the decision by the Circuit Court Judge does not have a material impact on the Back Forty Project or Aquila’s permitting strategy or timelines, nor does it say anything about Michigan’s hospitability to mining generally and the Back Forty Project in particular.
- The Company will continue to advance its Back Forty Project in Michigan, where the main objectives are completing the optimized Feasibility Study and securing the remaining permits required for construction and operations. The Feasibility Study will incorporate both the open pit and underground mine plans and will reflect Aquila’s commitment to sustainability and responsible mining employing industry best practices.
- The Company will continue to undertake technical studies to support the optimized Feasibility Study that will seek to evaluate areas of opportunity. These include opportunities to:
- Simplify the process flowsheet and increase gold recoveries in light of improved metal prices; and
- Optimize the mine plan to enhance economics, reduce environmental impact, and improve the Project configuration and strip ratio.
- A key objective of the optimized Feasibility Study is to incorporate feedback from EGLE and the local community since the original permits were issued. By incorporating the underground mine plan and modifying the Project footprint, the Company expects to demonstrate substantially reduced surface impact, including wetland impacts, and a longer mine life for the benefit of all stakeholders.
- The Company will continue to work with EGLE to finalize the Back Forty groundwater model. Aquila is pleased with the significant progress made in this regard and has now completed the gathering of required site-specific data.
- Following the completion of the Feasibility Study, Aquila will seek to permit the optimized Project design.
- The Company will continue its efforts to secure additional financing and, in parallel, will evaluate various strategic alternatives to maximize shareholder value.
SELECTED FINANCIAL INFORMATION
The following table provides selected financial information that should be read in conjunction with the financial statements of the Company for the quarter ended March 31, 2021:
|Three Months Ended|
|Mineral property exploration expenses||$519,707||$712,160|
|Net finance charges (recoveries)||429,173||170,598|
|Loss from operations||$1,657,202||$1,686,895|
|(Gain) loss on foreign exchange||61,529||(984,234)|
|Loss (gain) on change in value of contingent consideration||(76,125)||220,913|
|(Gain) loss on change in fair value of warrant liability||(5,304)||(163,054)|
|Net and comprehensive loss for the period||$1,637,302||$760,610|
|Net loss per share – basic and diluted||–||–|