Business
Guanajuato Silver Arranges Debt Settlement
VANCOUVER, BC / ACCESSWIRE / January 5, 2024 / Guanajuato Silver Company Ltd. (the " Company " o...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"Guanajuato Silver Arranges Debt SettlementVANCOUVER, BC / ACCESSWIRE / January 5, 2024 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce it has arranged to settle an aggregate of $445,000 in outstanding liabilities of the Company by the issuance of an aggregate of 1,780,000 common shares in the capital of the Company at a deemed price of $0.25 per share (the \"Debt Settlement\"), subject to the receipt of TSX Venture Exchange approval. The Debt Settlement includes the issuance of shares to certain of the Company's suppliers totaling approximately $405,000 and to three members of senior management totaling approximately C$40,000.The issuance of shares to senior management will be considered a related party transaction within the meaning of Policy 5.9 of the TSX-V and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, adopted in the policy. The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such related party's participation in the debt settlement as neither the fair market value of the debt settlement of nor the fair market value of the shares to be issued thereunder, insofar as it involves related parties, is expected to exceed 25 per cent of the company's market capitalization (all as determined under MI 61-101). It is anticipated that the material change report of Guanajuato Silver to be filed in connection with this announcement of the debt settlement will be filed less than 21 days in advance of the closing of the debt settlement, which Guanajuato Silver considers reasonable within the context of current market conditions and the desire of all parties to complete the debt settlement as expeditiously as possible. The securities of the company that will be acquired by the related party will be acquired pursuant to an exemption from the prospectus requirement in Section 2.14 of National Instrument 45-106, Prospectus Exemptions.The debt settlement is subject to acceptance of the TSX-V, and all shares issued thereunder will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.About Gu...