Sego Resources Inc. - Shares for Debt and Stock Options
Suite 310 -744 West Hastings Street Vancouver, BC V6C 1A5 TSX-V: SGZ Tel: (604) 682-2933 www.segoresources.com Toll Free: 1-866-683-2933
Sego Resources Inc. - Shares for Debt and Stock Options
June 20, 2016 - Sego Resources Inc. (“Sego” or “the Company”) announces that the Company is proposing to issue shares for debt to certain non-arm’s length individuals and has granted stock options.
Shares for Debt:
Sego proposes to issue 7,857,500 common shares at a price of $0.05 per share to settle debts totalling $392,875. Management of Sego are owed the following amounts:
J. Paul Stevenson owed from November, 2013 to May 31, 2016 management fees $3,000.00 per month totalling $93,000 plus geological consulting fees until March 2014 totalling $53,728.62; expenses incurred (rent, telephones, insurance) $107,633.22; GST $12,632.89; cash loans $44,127.15 (interest free) for a total of $311,121.88 of which $275,000.00 will be satisfied by shares for debt.
J. Allan Hilton owed from July 2014 to May 31, 2016 geological consulting fees $51,600.00, expenses of $6,357.23, cash loans (interest free) $37,500.00 for a total of $95,457.23 of which $95,450.00 will be satisfied by shares for debt.
Carta Exploration Ltd. (Selina Tribe, PhD P.Geo.) is owed geological consulting fees of $6,825.00, the total of which will be satisfied by shares for debt.
MBP Management Ltd. (Brent Petterson, CPA) is owed accounting fees of $15,600.00, the total of which will be satisfied by shares for debt.
Management believes that the proposed shares-for-debt is necessary to strengthen the Company’s balance sheet and thereby increase the attractiveness of the Company for future private placement financings.
The proposed shares-for-debt filing is subject to regulatory approval. The shares issued would have a hold period of four months.
Stock Options:
Pursuant to the Company’s stock option plan, the Company has granted 3,998,575 stock options to directors, officers, employees and consultants exercisable at a price of $0.10 for a period of five years. The issuance of stock options are subject to regulatory approval.
Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056.54 hectares in size and located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Copper. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band, in whose Traditional Territory the Miner Mountain Project is situated. Sego holds a 5-year exploration permit for the property and has received an Award of Excellence for its reclamation work at Miner Mountain.
For further information please contact:
J. Paul Stevenson, CEO (604) 682-2933
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. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.