November 28, 2011
Troymet Announces $500,000 Private Placement and Review of Strategic Alternatives
November 28, 2011 Troymet Exploration Corp. (“Troymet”), is pleased to announce that Troymet intends to complete a non-brokered private placement of up to $500,000 consisting of a combination of units (“Units”) issued at a price of $0.055 per Unit and common shares issued on a “flow-through” basis at a price of $0.075 per common share. Each Unit will consist of one common share in the capital of Troymet (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each full Warrant is exercisable for one year from closing into one Common Share at $0.15 per share. A finder’s fee of up to 8% of the gross proceeds of the private placement may be paid in cash or Common Shares on all or any portion of this private placement. Additionally, finder’s warrants, exercisable into Common Shares of Troymet, may be issued in an amount up to 8% of the number of Units and flow-through Common Shares sold under this private placement. The finder’s warrants will be exercisable into Common Shares at a price of $0.055 per Common Share for a period of one year from the date of issuance of the finder’s warrants.It is not anticipated that any new insiders will be created, nor that any change of control will occur, as a result of the private placement. Completion of the private placement is subject to regulatory approval.
Proceeds of the private placement will be used for Troymet’s exploration programs at the Key and Golden Eagle properties in British Columbia, the McClarty Lake property in Manitoba, the strategic alternatives review (discussed below) and for general corporate purposes.
Closing of the financing is anticipated to occur on or around December 20, 2011.
Strategic Alternatives Review
The Board of Directors of Troymet has appointed a special committee comprising of Richard Kusmirski and David Billard with a mandate to undertake a process to evaluate the various strategic alternatives available to Troymet with the goal of maximizing shareholder value. These alternatives may include, but are not limited to, the spinout of certain properties of Troymet or other business combinations involving Troymet.
No decision on any particular alternative has been reached at this time and there can be no assurance that the process will result in any change in Troymet’s current operations, nor that Troymet will pursue any particular transaction or that any transaction will be concluded. Troymet does not intend to make any further announcement regarding the strategic alternatives review unless and until its Board of Directors has approved a specific transaction, if any, or another course of action has been approved or the Board of Directors otherwise deems disclosure of developments is appropriate.
For further information, contact:
Brian Cebryk (250) 890-0607
Kieran Downes (250) 729-0453
Website: www.troymet.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. In particular, this press release contains forward looking information in respect of the strategic alternatives review. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, there is no guarantee that the strategic alternatives review will result in any change in Troymet’s current operations, nor that Troymet will pursue any particular transaction or that any transaction will be concluded. A description of certain assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company’s disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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