P2 Gold Announces Convertible Debenture Interest Payment and Conversion Price Increase
P2 Gold Announces Convertible Debenture
Interest Payment and Conversion Price
Increase
VANCOUVER, BC
,
Jan. 7, 2025
/CNW/ -
P2 Gold Inc.
("P2" or the "Company") (TSX-V: PGLD)
(OTCQB: PGLDF) reports that under the terms of the convertible debentures (the "Convertible
Debentures") issued on
March 4, 2024
and
March 14, 2024
(
see news releases dated
March 5,
2024
and
March 14, 2024
), (a) it has elected to satisfy its obligation to pay accrued interest in
shares of the Company and (b) the conversion price will increase to
$0.10
per share from
$0.07
per
share on
February 1, 2025
.
Convertible Debenture Interest Payment
At
December 31, 2024
, Convertible Debentures having an aggregate value of
$1,374,500
were
outstanding (Convertible Debentures having an aggregate value of
$290,500
were converted into
shares of the Company prior to
December 31
, 2024). The Company has elected to pay an
aggregate of
$51,967.42
in interest accrued on the
$1,374,500
of Convertible Debentures by issuing
to such debenture holders for the interest payment (the "Interest Payment") due
December 31, 2024
an aggregate of 822,467 common shares of the Company.
The Company will pay to each such debenture holder approximately 598.38 common shares per
$1,000
principal amount of Convertible Debentures held as at the applicable interest payment record
date. Under the terms of the Convertible Debentures, no fractional common shares will be delivered
upon payment of the interest obligation. The issuance of common shares in payment of interest
remains subject to the approval of the TSX Venture Exchange (the "Exchange"). The common
shares to be issued in respect of the Interest Payment will be subject to a hold period of four months
from the date of issuance.
A director and officer of the Company is a holder of Convertible Debentures. As a result, the
Interest Payment is considered to be a "related party transaction" under Multilateral Instrument 61-
101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Interest
Payment in respect of this individual is exempt from the minority approval and formal valuation
requirements of MI 61-101 pursuant to subsections 5.5(b) and 5.7(1)(a) of MI 61-101 as neither the
fair market value of the debt, nor the fair market value of the shares to be issued in settlement of the
debt, exceeds 25% of P2's market capitalization.
Increase in Conversion Price of Convertible Debentures
Under the terms of the Convertible Debentures, a holder may elect to convert the outstanding net
principal amount, or any portion thereof, into shares of the Company at a conversion price of
$0.07
per share up to
January 31, 2025
and
$0.10
per Share from
February 1, 2025
up to
January 31,
2026
.
About P2 Gold Inc.
P2 Gold is a mineral exploration and development company focused on advancing its gold-copper
Gabbs Project on the Walker Lane Trend in Nevada. A positive preliminary economic assessment
has outlined a long-life, mid-size mine at Gabbs with annual average production of 104,000 ounces
gold and 13,500 tonnes copper over a 14.2 year mine life.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities
laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking
information" includes statements that use forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or
comparable terminology. Such forward-looking information includes, without limitation, information
with respect to the Company's expectations, strategies and plans for its exploration and
development projects.
Forward-looking information is not a guarantee of future performance and is based upon a number
of estimates and assumptions of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and unknown risks, uncertainties and
other factors which may cause the actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any future plans, intentions, activities,
results, performance or achievements expressed or implied by such forward-looking information.
See "Risk Factors" in the Company's annual information form for the year ended
December 31,
2023
, dated
March 21, 2024
filed on SEDAR at
www.sedar.com
for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any
revisions to forward-looking information contained in this press release to reflect events or
circumstances after the date hereof.
SOURCE
P2 Gold Inc.
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For further information:
For further information, please contact: Joseph Ovsenek, President &
CEO, (778) 731-1055; P2 Gold Inc., Suite 789, 999 Hastings Street, Vancouver, BC, V6C 2W2,
[email protected], (SEDAR filings: P2 Gold Inc.); Michelle Romero, Executive Vice President, (778)
731-1060
CO: P2 Gold Inc.
CNW 05:00e 07-JAN-25