Visible Gold Mines Announces Issuance of Shares in Payment of Certain Debts
Visible Gold Mines Announces Issuance of
Shares in Payment of Certain Debts
ROUYN-NORANDA, QC
,
April 14, 2020
/CNW Telbec/ -
Visible Gold Mines Inc. (TSXV: VGD)
(
Frankfurt
: 3V41)
announces that it intends to issue an aggregate of 3,575,200 common shares in
settlement of debts in an aggregate amount of
$178,760
. The debts resulted from exploration
services
($108,760)
provided one of its creditors (the "
Debt Settlement
"), and for management
services provided by a company controlled by Visible Gold's President and Chief Executive Officer
($32,500)
and a company controlled by Visible Gold's Chief Financial Officer
($37,500)
, respectively
(the "
Insider Debt Settlement
"), from
January 2019
to
March 2020
.
The Insider Debt Settlement is considered a "related party transaction" as defined under Multilateral
Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("
MI 61-101
").
The Insider Debt Settlement will be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as Visible Gold's securities are not listed on any of the stock
exchanges set out in Section 5.5(b) of MI 61-101 and neither the fair market value of the common
shares to be issued to the company controlled by Visible Gold's President and Chief Executive
Officer and to the company controlled by Visible Gold's Chief Financial Officer, nor the fair market
value of the services provided by such companies, exceeds 25% of Visible Gold's market
capitalization.
The common shares to be issued pursuant to the Debt Settlement and the Insider Debt Settlement
will be issued at a deemed price of
$0.05
per share and will be subject to a four-month hold period
pursuant to applicable securities legislation and the policies of the TSX Venture Exchange.
The Board of Directors and Management of Visible Gold believe that the proposed settlement of
debts through the issuance of common shares is in Visible Gold's best interests as it will allow
Visible Gold to preserve its cash position.
About Visible Gold Mines
Visible Gold Mines is a resource company focused on acquiring and exploring precious metals in
northwestern Québec, considered one of the world's best jurisdictions for mining and exploration.
The Company has 22,239,339 shares outstanding.
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
the release.
Website:
www.visiblegoldmines.com
SOURCE
Visible Gold Mines Inc.
View original content:
http://www.newswire.ca/en/releases/archive/April2020/14/c3082.html
%SEDAR: 00025339E
For further information:
Martin Dallaire, President and Chief Executive Officer, Telephone: 819-
762-0107, Fax: 819-762-0097, E-mail: [email protected]
CO: Visible Gold Mines Inc.
CNW 15:10e 14-APR-20