Business
Lincoln Gold Announces Debt Settlement and Reorganization
VANCOUVER BC / ACCESSWIRE / February 25, 2020 / Lincoln Gold Mining Inc. (" Lincoln " or t...
About this update from Lincoln Gold Mining Inc
[{"type":"text","content":"Lincoln Gold Announces Debt Settlement and ReorganizationVANCOUVER BC / ACCESSWIRE / February 25, 2020 / Lincoln Gold Mining Inc. (\"Lincoln\" or the \"Company\") (TSXV:LMG) announces that it has entered into debt settlement agreements with certain arms' length and non-arms' length parties (the \"Creditors\") to settle or reorganize an aggregate C$1,355,720 in debt (the \"Debt\").The Creditors include, among others, Paul Saxton, President, CEO and a director of the Company (through his consulting company), Eugene Beukman, CFO (through his consulting company) and Jeffrey L. Wilson, Vice President Exploration and Executive Vice President of the Company. In partial settlement of the Debt, the Company will issue 500,000 common shares of the Company to Mr. Saxton, 410,000 common shares of the Company to Mr. Beukman and 660,000 common shares of the Company to Mr. Wilson for an aggregate of 1,570,000 common shares of the Company (the \"Debt Shares\") at a deemed price of C$0.10 per Debt Share (the \"Debt Settlement\"). An additional 630,000 Debt Shares will be issued to certain arms' length Creditors at a deemed price of $0.10 per Debt Share in partial satisfaction of the Debt.In addition to the Debt Settlement, the Company has negotiated agreements with certain of the Creditors to defer repayment of $1,135,720 short term debt for a period of up to three years from the date of the debt settlement agreements with each respective party (the \"Debt Reorganization\"). Certain short term debt owed to Mr. Saxton and Mr. Wilson has been deferred in the Debt Reorganization.Each of Messrs. Saxton, Beukman and Wilson are considered to be a \"related party\" of the Company within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") and each issuance of Debt Shares pursuant to the Debt Settlement is considered to be a \"related party transaction\" within the meaning of MI 61-101, but each is exempt from the formal valuation and minority shareholder requirements of MI 61-101 pursuant to the exemptions contained in sections 5.5(b) and 5.7(1)(a) in that the Company's shares are not listed on a specified market and the fair market value of the consideration for the securities of the Company to be issued to the related parties does not exceed 25% of its market capitalization.All s...