Proposed Issuance of Shares in Settlement of Debt and Grant of Incentive Options Shares for Debt
DECADE RESOURCES LTD.
(the “Company”)
611 - 8th Street Stewart, British Columbia, V0T 1W0
Telephone: (250) 636-2264 Fax: (250) 636-2265
NEWS RELEASE
May 13, 2016 TSX-V: DEC
PROPOSED ISSUANCE OF SHARES IN SETTLEMENT OF DEBT AND GRANT OF INCENTIVE OPTIONS
Shares for Debt
The Company is pleased to announce it is entering into agreements with several creditors pursuant to which it will issue 11,710,288, at a deemed price of $0.05 per share, to settle indebtedness of $585,514.40. A total of 10,556,410 shares are to be issued to related parties. The issuance of the shares is subject to TSX Venture Exchange.
Edward Kruchkowski, the Chief Executive Officer, President and a director of the Company, Randolph Kasum, the Chief Financial Officer and a director of the Company, and Brian Morrison, a director of the Company will participate in the shares for debt by receiving, either directly or indirectly through their privately owned companies, an aggregate of 10,556,410 shares. The participation by such officers and directors are considered “related party transactions” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transactions are exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair market value of the shares to be issued to, nor the consideration paid by, the related parties will exceed 25% of the Company's market capitalization.
The Company expects that the proposed debt settlements will assist the Company in securing financing.
Grant of Incentive Stock Options
The Company also announces that a total of 1,500,000 new incentive stock options have been granted to directors, officers and consultants of the Company pursuant to the Company’s Stock Option Plan. The options are exercisable for a period of five years at a price of $0.06 per share.
BY ORDER OF THE BOARD OF DIRECTORS OF DECADE RESOURCES LTD
"Randolph Kasum"
Randolph Kasum, Director
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
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