Business
Lincoln Gold Completes Debt Settlement and Reorganization
VANCOUVER, BC / ACCESSWIRE / March 9, 2020. Lincoln Gold Mining Inc. (" Lincoln " or the "...
About this update from Lincoln Gold Mining Inc
[{"type":"text","content":"Lincoln Gold Completes Debt Settlement and ReorganizationVANCOUVER, BC / ACCESSWIRE / March 9, 2020. Lincoln Gold Mining Inc. (\"Lincoln\" or the \"Company\") (TSXV:LMG) announces that, further to its news release of February 25, 2020, it has completed a debt settlement (the \"Debt Settlement\") and reorganization (the \"Debt Reorganization\") of an aggregate $1,355,720.The Debt Settlement results in $220,000 in debt eliminated from the Company's balance sheet. Under the terms of the Debt Settlement, the Company issued 500,000 common shares of the Company to Paul Saxton, President, CEO and a director of the Company (through his consulting company), 410,000 common shares of the Company to Eugene Beukman, CFO of the Company (through his consulting company) and 660,000 common shares of the Company to Jeffrey L. Wilson, Vice President Exploration and Executive Vice President of the Company, 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 were issued to certain arms' length creditors at a deemed price of $0.10 per Debt Share.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.The Debt Settlement was unanimously approved by the Company's board of directors with the exception of Mr. Saxton, who disclosed his interest in the Debt Settlement and abstained from consideration or approval of matters relating to the Debt Settlement.All securities issued or issuable under the Debt Settlement are subject to a four month hold period expiring on July 10, 2020.In addition to the Debt Settlement, th...