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Scorpio Gold Announces Elimination of Outstanding Debt, Converting into Shares at 100% Premium to Private Placement
Vancouver, British Columbia--(Newsfile Corp. - August 27, 2024) - Scorpio Gold Corporation (TSXV...
About this update from Scorpio Gold Corporation
[{"type":"text","content":"Scorpio Gold Announces Elimination of Outstanding Debt, Converting into Shares at 100% Premium to Private PlacementVancouver, British Columbia--(Newsfile Corp. - August 27, 2024) - Scorpio Gold Corporation (TSXV: SGN) (OTCQB: SRCRF) (FSE: RY9) (\"Scorpio Gold\", \"Scorpio\", or the \"Company\") is pleased to announce that its board of directors has approved the settlement of (i) $1,674,316 in debt owing to Matco Holdings Ltd. (\"Matco\"), a company wholly-owned by Bruce Dawson, a former director of the Company (the \"Matco Debt Settlement\"), and (ii) $1,673,783 in debt owing to Ianco Holdings Ltd. (\"Ianco\" and, together with Matco, the \"Creditors\"), a company wholly-owned by Ian Dawson, a director of the Company (the \"Ianco Debt Settlement\" and, together with the Matco Debt Settlement, the \"Debt Settlements\"), through the issuance of an aggregate of 13,950,411 common shares of the Company at a deemed price of $0.24 per share. Completion of the Debt Settlements is subject to the approval of the TSX Venture Exchange (\"TSXV\"). All shares issued pursuant to the Debt Settlements will be subject to a four-month hold period which will expire on the date that is four months and one day from the date of issue.\"We are very pleased to convert the outstanding debt held by Ian and Bruce Dawson, longtime supporters and shareholders of Scorpio Gold. The conversion of debt at a 100% premium to our current private placement speaks to the confidence and support that our close stakeholders have in the Scorpio Gold assets. This debt settlement will strengthen our balance sheet and position the Company well for our next stage of growth. We look forward to upcoming catalysts, including drill results from our recent drill campaign at Manhattan, developments as we look at production scenarios with Mineral Ridge, and our forthcoming technical report with maiden resource estimate on Manhattan,\" stated Zayn Kalyan, CEO and Director of Scorpio Gold.Private PlacementThe Company also announces that it intends to complete a non-brokered private placement (the \"Offering\") for total proceeds of up to $2,100,000, consisting of up to 17,500,000 common shares (\"Shares\") of the Company at a price of $0.12 per Share. The Company may compensate certain eligible finders, in accordance with the policies of the TSXV, with a cash commission of up to 7% o...