- NV Gold (TSXV:NVX)(OTCQB:NVGLF) initiates shares-for-debt transaction, converting US$419,050 debt into shares.
- A total of 5,161,578 common shares will be issued at C$0.1125 per share.
- The transaction, involving company president John Watson, is classified as a related party transaction.
NV Gold Corporation (TSXV:NVX)(OTCQB:NVGLF) has announced a shares-for-debt transaction to settle outstanding loans. The transaction will convert US$419,050 (C$580,677.58) into 5,161,578 common shares priced at C$0.1125 each. This settlement addresses loans extended between June 2023 and January 2025 by John Watson, the company’s President, Chairman, CEO, and director.
The transaction is classified as a related party transaction under Multilateral Instrument 61-101 but is exempt from formal valuation and minority approval requirements due to NV Gold's serious financial difficulties. The issuance of shares aims to improve the company’s financial position without requiring immediate cash outflow.
The settlement shares will be subject to a four-month statutory hold period as per applicable securities legislation and the transaction awaits TSX Venture Exchange approval. Interest accrued on the debt remains unpaid as part of this settlement.
NV Gold is a Vancouver-based exploration company focusing on mineral discoveries in Nevada, USA, with a broad property portfolio of 21 projects totaling 53.4 square kilometers. The company continues to seek value creation despite financial challenges, utilizing its extensive geological data and technical expertise.
