CALGARY, AB / ACCESSWIRE / December 10, 2019 / Pacific Iron Ore Corporation (the “Corporation”) announces that it has entered into debt settlement agreements with several creditors, including a director and a corporation that is controlled by a director who is also an officer of the Corporation, in order to settle $21,000 in outstanding liabilities (the “Outstanding Liabilities“). The Corporation has issued 420,000 common shares in the capital of the Corporation (the “Shares“) at a deemed price of $0.05 per Share in settlement of the Outstanding Liabilities (the “Debt Settlement“).
As a portion of the Shares have been issued to directors and officers of the Corporation, the Debt Settlement constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Debt Settlement is exempt from the formal valuation requirements and minority shareholder approval requirements of MI 61-101 pursuant to Sections 5.5 and 5.7. The Shares issued in connection with the Debt Settlement will be subject to a four-month hold period in accordance with applicable securities law.
The Corporation did not file a material change report more than 21 days before closing of the Debt Settlement as the details of the creditors were not settled until shortly prior to the closing, which occurred on an expedited basis to ensure it would be completed prior to the Corporation’s fiscal year-end.
For further information please refer to the Corporation’s profile on SEDAR which can be accessed at www.sedar.com or contact:
Joel Freudman, Chief Executive Officer Telephone: (647) 880-6414
SOURCE: Pacific Iron Ore Corporation
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