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VANCOUVER — May 14, 2024 — NV Gold Corporation has announced a debt settlement deal. The company will issue shares to its CEO, John Watson, to resolve over US$400,000 in outstanding debt. The agreement, involving common shares, will see NV Gold address financial obligations. The company is seeking TSX Venture Exchange approval, a move that improves the NV Gold bottom line, offering insight into their financial strategy and outlook for stakeholders.
Vancouver, British Columbia—NV Gold Corporation (TSXV: NVX) (OTCQB: NVGLF) (FSE: 8nv) has announced an agreement to settle outstanding debt thru the issuance of common shares.The company will issue 5,161,578 common shares, priced at C$0.1125 per share, to settle a total of US$419,050 (C$580,677.58) owed to John watson, the company’s President, Chairman, CEO, and a director.
Details of the Debt Settlement
- Share Issuance: 5,161,578 common shares
- Price per Share: C$0.1125
- Total Debt Settled: US$419,050 (C$580,677.58)
- Recipient: John Watson, President, Chairman, CEO, and Director of NV Gold Corporation
- Debt Origin: Loan agreements dated June 26, 2023, July 10, 2023, September 18, 2023, January 22, 2024, March 14, 2024 and January 27, 2025
- Outstanding Interest: Payment of accrued interest remains outstanding.
Did You Know?
Share issuance is a common method for companies to manage debt, especially when facing financial constraints. It allows them to conserve cash while fulfilling obligations.
The debt settlement is classified as a related party transaction
under Multilateral Instrument 61-101 (“MI 61-101”). Though, NV Gold is relying on exemptions from formal valuation and minority approval requirements due to its financial situation.
Specifically, the company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101, relying on Section 5.5(b) as it is indeed not listed on a specified market. Moreover, it is indeed exempt from the minority approval requirement in Section 5.6 of MI 61-101, based on Section 5.7(1)(e), wich applies when a company is in serious financial difficulty and the transaction is designed to improve its financial position.
The board of directors and independent directors determined in good faith that the company is in serious financial difficulty, and the debt settlement would improve its financial position. They also deemed the terms of the debt settlement reasonable under the circumstances.
Pro Tip
Understanding related party transaction regulations is crucial for investors.These regulations are designed to protect minority shareholders and ensure fair dealings.
regulatory Approval and Hold Period
The debt settlement is subject to approval from the TSX venture Exchange. The issued shares will be subject to a statutory hold period of four months from the date of issuance, in accordance with applicable securities legislation.
About NV Gold Corporation
NV Gold Corporation is an exploration company with approximately 10 million shares issued and outstanding. The company has 21 exploration projects in Nevada, comprising 639 100%-Company-owned lode mining claims totaling 53.4 square kilometers (20.6 square miles). Based in Vancouver, British Columbia, and Reno, Nevada, NV Gold focuses on delivering value through mineral discoveries in Nevada, USA.
According to NV Gold, Leveraging its expansive property portfolio, its highly experienced in-house technical team, and its extensive geological data library, 2025 promises to be highly productive for NV Gold.
Leadership Outlook
John Watson, President, Chairman, CEO and Director of NV Gold Corporation, represents the company’s leadership.
FAQ: NV Gold Debt Settlement
Forward-Looking Statements
This proclamation contains forward-looking information subject to risks and uncertainties. Actual results may differ materially from those suggested in any forward-looking statements. The company does not undertake to update any forward-looking statement accept in accordance with applicable securities laws.
