Treasury Metals closes $4 mln private placement financing

Treasury Metals (TSE:TML) has closed a $4 million brokered private placement financing and plans to use the money to advance gold projects in northwestern, Ontario, the company announced Tuesday.
The previously-announced financing was led by Cormark Securities, Canaccord Genuity Corp. and Raymond James.
The offering consisted of 3.52 million flow-through common shares of Treasury Metals for $1.15 a share.
A cash commission equal to six percent of the gross proceeds of the offering was paid to the agents, as well as compensation options.
The net proceeds of the financing will be used to incur eligible Canadian Exploration Expenses and flow-through mining expenditures, the company said.
Treasury Metals plans to use the funds to explore and advance its gold projects located in the Kenora mining district of northwestern, Ontario.
The Kenora mining district covers more than 75,000 kilometres and extends 360 kilometres eastward from the Manitoba border and 200 kilometres northward from the U.S. border. The district was historically the centre of gold production in Ontario.
In late October, the company announced further high-grade drill results from its Goliath gold project in Dryden, Ontario.
The company was focused on three zones at the property - Central, West, and East, though a fourth zone, C Zone, has also produced encouraging results.
Highlights of the results included hole TL11-220, which returned 8.8 grams per tonne (g/t) gold over 4 metres in the Western Main Zone, and 3.5 metres at 14.9 g/t gold from the C-Zone.
In addition, the best result was hole TL11-223, showing intercepts of 4.2 metres at 13.1 g/t gold in the Central Main Zone.
The Canadian explorer saw its stock trade flat on Tuesday at 95 cents a share on the Toronto Stock Exchange.