Lincoln Gold Completes Debt Settlement and Reorganization
Suite 400 – 789 West Pender Street
Vancouver, BC V6C 1H2
Tel: 604-688-7377
Web: www.lincolnmining.com
Lincoln Gold Completes Debt Settlement and Reorganization
VANCOUVER – March 9, 2020. Lincoln Gold Mining Inc. (“Lincoln” or the “ Company”) (TSXV: LMG)
announces that, further to its news release of February 25, 2020 , it has completed a debt settlement
(the "Debt Settlement") and reorganization (the “Debt Reorganization”) of an aggregate $1,355,720.
The Debt Settlement results in $220,000 in debt eliminated from the Company's balance sheet. Under
the terms of the Debt Settlement, the Company issued 500,000 common shares of the Company to Paul
Saxton, President, CEO and a director of the Company (through his consulting company), 410,000
common shares of the Company to Eugene Beukman, CFO of the Company (through his consulting
company) and 660,000 common shares of the Company to Jeffrey L. Wilson, Vice President Exploration
and Executive Vice President of the Company, for an aggregate of 1,570,000 common shares of the
Company (the "Debt Shares") at a dee med price of C$0.10 per Debt Share (the " Debt Settlement").
An additional 630,000 Debt Shares w ere issued to certain arms’ length c reditors at a deemed price of
$0.10 per Debt Share.
Each of Messrs. Saxton, Beukman and Wilson are considered to be a "related party" of the Company
within the meaning of Multilateral Instrument 61 -101 Protection of Minority Security Holders in Special
Transactions ("MI 61 -101") and each issuance of Debt Shares pursuant to the Debt Settl ement is
considered to be a "related party transaction" within the meaning of MI 61-101, but each is exempt from
the formal valuation and minority shareholder requirements of MI 61 -101 pursuant to the exemptions
contained in sections 5.5(b) and 5.7(1)(a) i n that the Company’s shares are not listed on a specified
market and the fair market value of the consideration for the securities of the Company to be issued to
the related parties does not exceed 25% of its market capitalization.
The Debt Settlement was unanimously approved by the Company's board of directors with the exception
of Mr. Saxton, who disclosed his interest in the Debt Settlement and abstained from consideration or
approval of matters relating to the Debt Settlement.
All securities issued or issuable under the Debt Settlement are subject to a four month hold period
expiring on July 10, 2020.
In addition to the Debt Settlement, the Company negotiated the Debt Reorganization with certain creditors
to defer repayment of $1,135,720 short term debt for a period of up to three years from the date o f the
debt settlement agreement with each respective party . The Debt Reorganization includes certain short
term debt owed to Messrs. Saxton and Wilson.
The Company expects that the proposed Debt Se ttlement and Debt Reorganization will assist the
Company in preserving its current cash for working capital and seeking new financing opportunities in
order to maintain its operations and advance the permitting and development of the Company's Pine
Grove project in Nevada.
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About Lincoln
Lincoln Gold Mining Inc. is an advanced-stage gold mine exploration and development company holding
a 100% interest in the Pine Grove Gold Project, in the Walker Lane structural zone of western Nevada.
The Company has pre pared a preliminary economic assessment of the Pine Grove Gold Project
pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Lincoln is working
with the USFS to secure the permits necessary to develop the Pine Grove Gold Project into a low -cost
heap leach operation with a high-grade gravity circuit.
Lincoln also owns an interest in a joint venture in respect of the Oro Cruz Gold Property in California.
Lincoln’s joint venture partner is advancing the Oro Cruz Gold Property towards further exploration,
development and production.
Lincoln holds its interests in these projects through its wholly owned subsidiaries, Lincoln Resou rce
Group Corp. and Lincoln Gold US Corporation, both Nevada corporations.
For more information, please contact Paul Saxton, President and CEO of the Company.
On behalf of Lincoln Gold Mining Inc.
Paul Saxton
President and CEO, Lincoln Gold Mining Inc.
Tel: (604) 688-7377
Email: [email protected]
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither 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.
All statements, trend analysis and other information contained in this press release relative to markets about
anticipated future events or results constitute forward -looking statements. Forward -looking statements are often,
but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”
and “intend” and statements that an event or res ult “may”, “will”, “should”, “could” or “might” occur or be achieved
and other similar expressions. All statements, other than statements of historical fact, included herein, including,
without limitation, statements relating to the permitting process, fut ure production of Pine Grove Gold Project,
budget and timing estimates, the Company’s working capital and financing opportunities and statements regarding
the exploration and mineralization potential of the Company’s properties, are forward-looking statements. Forward-
looking statements are subject to business and economic risks and uncertainties and other factors that could cause
actual results of operations to differ materially from those contained in the forward - looking statements. Important
factors th at could cause actual results to differ materially from Lincoln’s expectations include fluctuations in
commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and native
groups in the exploration and development of properties and the issuance of required permits; the need to obtain
additional financing to develop properties and uncertainty as to the avail ability and terms of future financing; the
possibility of delay in exploration or development programs and uncertainty of meeting anticipated program
milestones; and uncertainty as to timely availability of permits and other governmental approvals. Forward-looking
statements are based on estimates and opinions of management at the date the statements are made. Lincoln
does not undertake any obligation to update forward-looking statements except as required by applicable securities
laws. Investors should not place undue reliance on forward- looking statements.