Business
Shares for Debt Transactions
TORONTO, ON / ACCESSWIRE / November 8, 2022 / PPX Mining Corp. (the " Company " or " PPX ") ...
About this update from Ppx Mining Corp.
[{"type":"text","content":"Shares for Debt TransactionsTORONTO, ON / ACCESSWIRE / November 8, 2022 / PPX Mining Corp. (the \"Company\" or \"PPX\") announces that it has entered into binding commitments with certain arm's length and non‑arm's length creditors of the Company to settle US$2,194,017 of outstanding debt (the \"Debt Settlement\") through the issuance of common shares of the Company (\"Common Shares\"). Recognizing the need to preserve capital and improve the Company's working capital, the Company has agreed issue an aggregate of 108,700,842 Common Shares at a deemed issue price of C$0.0273 (US$0.02) per Common Share pursuant to the Debt Settlement, representing a 36.5% premium to today's closing price.The Debt Settlement is subject to the approval of the TSX Venture Exchange (the \"Exchange\") and execution of definitive debt settlement agreements. All Common Shares to be issued will be subject to a hold period expiring on the date that is four months and one day after the date of issuance, in accordance with applicable securities laws and the policies of the Exchange.Post-transaction, one of the creditors under the Debt Settlement, will own approximately 33.5% of the Common Shares and will therefore be a Control Person of the Company as defined in the policies of the Exchange. Consequently, the issuance of Common Shares to this creditor is subject to disinterested shareholder approval.The participation of certain creditors in the Debt Settlement constitutes \"related party transactions\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying upon exemptions from the formal valuation and minority shareholder approval under MI 61-101 in respect of the participation of these creditors in the Debt Settlement, in reliance on Sections 5.5(g) and 5.7(1)(e) of MI 61-101, respectively, as the Company considers to meet its requirements as set out in MI 61-101. The directors of the Company approved the Debt Settlement, with interested directors declaring their interest and abstaining from voting on the consent resolutions. No materially contrary view or abstention was expressed or made by any director of the Company in relation thereto.About PPX Mining Corp:PPX Mining Corp. (TSX.V: PPX.V, BVL: PPX) is a Canadian-based mining company with assets in northern Peru...