Business
P2 Gold Closes Agreement to Settle Outstanding Debt and Convertible Debenture Unit Offering
P2 Gold Closes Agreement to Settle Outstanding Debt and Convertible Debenture Unit Offering ...
About this update from P2 Gold Inc.
[{"type":"text","content":"\n \n \n \n P2 Gold Closes Agreement to Settle Outstanding Debt and Convertible Debenture Unit Offering\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n March 5, 2024\n \n \n /CNW/ -\n \n P2 Gold Inc.\n \n (\"P2\" or the \"Company\") (TSXV: PGLD) (OTCQB: PGLDF) reports that it has closed the agreement to settle the outstanding debt related to the acquisition of the Gabbs Project and the first tranche (the \"First Tranche\") of the concurrent non-brokered private placement of convertible debenture units (the \"Units\") for\n \n $1,362,000\n \n (the \"Offering\").\n \n \n \n \n \n \n \n \n \n \n Debt Settlement\n \n \n \n In settling the debt, P2 entered into a termination agreement (the \"Termination Agreement\") with Waterton Nevada Splitter, LLC (\"Splitter\"), an affiliate of Waterton Precious Metals Fund II Cayman, LP pursuant to which P2 will issue or pay to Splitter (a)\n \n US$1 million\n \n (paid) and 5,231,869 common shares (issued) in the capital of the Company (\"Shares\") at closing at a deemed price of\n \n C$0.07\n \n per Share, (b)\n \n US$125,000\n \n on or before\n \n January 31, 2025\n \n , and (c) US$125,000 on or before January 31, 2026.\n \n \n Splitter currently has beneficial ownership of, and control or direction over, 23,552,403 Shares of the Company, representing approximately 19.9% of the issued and outstanding Shares.\n \n \n Splitter is a \"related party\" of the Company.  The issuance of the Shares and cash payments to Splitter described above is considered a related party transaction subject to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.  The Company relied on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(g) and 5.7(1)(e) of Multilateral Instrument 61-101 on the basis that the debt settlement transaction is intended to improve the Company's financial position.\n \n \n In connection with the acquisition of the Gabbs Project, P2 granted t...