Business
Battery Metals and Silver Elephant Announces Debt Settlement
Vancouver, British Columbia--(Newsfile Corp. - September 7, 2022) - Battery Metals Royalties ...
About this update from Silver Elephant Mining Corp
[{"type":"text","content":"Battery Metals and Silver Elephant Announces Debt SettlementVancouver, British Columbia--(Newsfile Corp. - September 7, 2022) - Battery Metals Royalties Corp. (\"Battery Metals\") and Silver Elephant Mining Corp. (TSX: ELEF) (OTCQX: SILEF) (FSE: 1P2) (\"Silver Elephant\") announce that Battery Metals has entered into a debt settlement agreement with Silver Elephant pursuant to which Battery Metals will transfer an aggregate of 1,440,352 common shares of Flying Nickel Mining Corp. (the \"FLYN Shares\") to settle an aggregate of $193,811 in outstanding debts accrued since 2021 to Silver Elephant. Additionally, Silver Elephant announces that it has entered into a debt settlement agreement with Mr. John Lee, director and Chief Executive Officer of Silver Elephant, pursuant to which Silver Elephant will transfer the FLYN Shares to Mr. Lee to settle $193,811 in outstanding salaries and expenses accrued since 2021 to Mr. Lee.As Silver Elephant is a control person of Battery Metals, Battery Metals' debt settlement with Silver Elephant constitutes a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). Pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, each of Battery Metals and Silver Elephant is exempt from obtaining a formal valuation and minority approval of Battery Metals' and Silver Elephant's respective shareholders as the fair market value of Battery Metals' debt settlement with Silver Elephant is below 25% of the market capitalization of each of Silver Elephant and Battery Metals as determined in accordance with MI 61-101. As Mr. Lee is an insider of Silver Elephant, Silver Elephant's debt settlement with Mr. Lee constitutes a \"related party transaction\" under MI 61-101. Pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, Silver Elephant is exempt from obtaining a formal valuation and minority approval of Silver Elephant's shareholders as the fair market value of Silver Elephant's debt settlement with Mr. Lee is below 25% of the Silver Elephant's market capitalization as determined in accordance with MI 61-101.A material change report including details with respect to the related party transactions could not be filed more than 21 days prior to the closing of the debt settlements as the parties did not receive prior confirma...