Business
KGL Resources Provides Supplemental Information for Proposed Debt Settlement
Toronto, Ontario--(Newsfile Corp. - May 9, 2025) - KGL Resources Ltd. (TSXV: KGL.H) (" KGL " or t...
About this update from Kgl Resources Ltd
[{"type":"text","content":"KGL Resources Provides Supplemental Information for Proposed Debt SettlementToronto, Ontario--(Newsfile Corp. - May 9, 2025) - KGL Resources Ltd. (TSXV: KGL.H) (\"KGL\" or the \"Company\") is providing supplemental information to assist shareholders in their consideration of the proposed debt settlement with Loncor Gold Inc. (\"Loncor\") announced in the Company's press release of March 25, 2025 (the \"Debt Settlement\") and for which additional details are provided in the Company's management information circular dated April 16, 2025 (the \"Circular\"), which has been filed by the Company on SEDAR+ (www.sedarplus.ca) and made available to shareholders. The matter will be considered at the Company's annual and special shareholders' meeting to be held in Toronto, Canada on Friday, May 30, 2025 (the \"Meeting\"). Under the Debt Settlement, the Company is proposing to settle $620,000 of indebtedness owing to Loncor for cash loans and advances and interest thereon (the \"Loncor Debt\") by the issuance of 8,857,142 post-consolidated common shares at a deemed price of $0.07 per share (\"Debt Settlement Price\") following a proposed 1 for 2 share consolidation (the \"Share Consolidation\"). The Debt Settlement is subject to completion of the Share Consolidation and all required shareholder and regulatory approvals, including the NEX Board of the TSX Venture Exchange (\"NEX\"). The Debt Settlement Shares will be subject to a 4-month hold period.The directors of the Company have been searching for suitable assets or companies to acquire with a view to the re-activation of the Company. It has become evident in this search process that the Loncor Debt must be converted into equity to make the Company more attractive to transaction counterparties. The CEO's of the Company and Loncor undertook discussions regarding the settlement of the Loncor Debt between March 10 and March 23, 2025. The CEO of the Company is an officer of Loncor and therefore the negotiations and discussions were not conducted on an arm's length basis. The parties ultimately agreed on the Debt Settlement Price of $0.07 per share based on the last trading price of the shares on the NEX on March 14, 2025 of $0.035 per share and adjusted for the proposed 1 for 2 Share Consolidation ratio, which Share Consolidation is a condition of the Debt Settlement. All three of the direct...