Treasury Metals (TSE:TML) has closed the final tranche of a non-brokered private placement financing, raising a total of $1.78 million in the offering for the advancement of its Goliath gold project in Ontario.
Including the first tranche that closed last week, the financing was made up of 2.64 million units of the company at a price of 45 cents each and 1.19 million flow-through shares at 50 cents each.
Each unit consists of one common share and one half of one share purchase warrant exercisable for a period of 36 months from the closing date. Each whole warrant can be used for one additional common share for a price of 75 cents each.
The funds will be used specifically for the completion of an environmental impact statement at the project, as well as for general working capital needs.
Treasury is advancing its 1.7 million gold equivalent-ounce Goliath gold project near Dryden in northwestern Ontario. The project boasts near-term production potential, with Treasury forecasting production start-up in late 2015, with average annual life-of-mine output of around 80,000 gold equivalent ounces at cash costs of $698 an ounce.
Broker Casimir Capital recently started initial coverage on the company with a speculative buy recommendation and a target price of C$1.25 per share - way up from its current trading price of 42.5 cents, suggesting plenty of upside potential.
"Amid a wave of capex blowouts, the scaling back of numerous projects, increasingly activist local protests in some jurisdictions, plans for increased government royalties and windfall taxes, and even outright nationalizations, we highlight Treasury Metals Inc," the analyst wrote in a morning research note in early April.
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