Golden Spike Announces Debt Settlement

Rhea-AI Summary

Golden Spike Resources (OTCQB: GSPRF) has entered into debt settlement agreements with three directors and the corporate secretary. The company plans to issue an aggregate 1,720,000 shares at a deemed price of $0.05 per share to settle CAD$86,000 of indebtedness, subject to Canadian Securities Exchange approval.

All shares issued under the debt settlement will be subject to a four-month plus one day statutory hold period. Golden Spike states it is using shares instead of cash to preserve funds for operations while continuing its mineral exploration activities at the Gregory River Property in Newfoundland.

Positive

• Debt of CAD$86,000 eliminated via share issuance
• Preserves cash resources for ongoing operations and exploration
• Insiders agreeing to shares aligns management with equity holders

Negative

• Issuance of 1,720,000 new shares creates shareholder dilution
• Debt settlement remains subject to CSE approval, adding execution risk
• Four-month plus one day hold period may delay liquidity for recipients

Argus Aug 4 session

-39.14% close to close 2.6x rel. volume Open Argus

Details

News Market Reaction – GSPRF

On Aug 4, the first trading day after this news, GSPRF closed 39.14% below the previous close. That session’s volume was 2.6x the stock’s average daily volume.

Data tracked by StockTitan Argus for the Aug 4 session.

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Vancouver, British Columbia--(Newsfile Corp. - July 30, 2026) - Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) ("Golden Spike" or the "Company") has entered into debt settlement agreements with three directors and the corporate secretary of the Company, pursuant to which the Company has agreed to issue an aggregate of 1,720,000 shares at a deemed price of $0.05 per share (each a "Share"), to settle a total indebtedness of CAD$ 86,000.00 (the "Debt Settlement") subject to the approval of the Canadian Securities Exchange (the "Exchange").

All shares, once issued on closing, will be subject to a four month plus one day statutory hold period. The Company has resolved to satisfy the outstanding indebtedness with Shares to preserve its cash for operations.

About Golden Spike

Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) is a Canadian mineral exploration company focused on identifying, acquiring and unlocking value in mineral opportunities in Canada and other low-risk jurisdictions. The Company currently holds 100% interest in the 5,175-hectare Gregory River Property in Newfoundland, strategically centered over an approximate 11-kilometre-long stretch of the Gregory River VMS-belt, a north-northeast trending corridor of very prospective ground with potential to host Cyprus-type polymetallic VMS deposits. In addition, the Property hosts a cluster of historically explored, high-grade, copper ±gold-zinc vein structures and breccia hosted stockworks. Golden Spike Resources remains dedicated to sustainable exploration practices and continues to collaborate with local communities, consultants, and stakeholders as it progresses its exploration initiatives.

For further information, please contact: Keith Anderson, President, Golden Spike Resources Corp. Tel: 604-786-7774, Email: kanderson7774@gmail.com

Website: https://www.goldenspikeresources.com

ON BEHALF OF THE BOARD OF DIRECTORS

Keith Anderson

Golden Spike Resources Corp.
830 - 1100 Melville St.,
Vancouver, BC, V6E 4A6
+1 (604) 786-7774
info@goldenspikeresources.com 
www.goldenspikeresources.com

"Neither the Canadian Securities Exchange (the "CSE") nor its Regulation Services Provider (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this release."

Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" occur.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information contained herein. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement or forward-looking information disclosed herein, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307323

FAQ

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What did Golden Spike Resources (OTCQB: GSPRF) announce on July 30, 2026?

Golden Spike announced agreements to settle CAD$86,000 of debt by issuing 1,720,000 shares at $0.05 per share. According to Golden Spike, the settlement with three directors and the corporate secretary is subject to Canadian Securities Exchange approval and includes a statutory hold period.

How many shares will Golden Spike (GSPRF) issue in its July 2026 debt settlement?

Golden Spike plans to issue 1,720,000 common shares to settle CAD$86,000 of indebtedness. According to Golden Spike, the deemed issue price is $0.05 per share, and all shares will be subject to a four-month plus one day statutory hold period after closing.

What is the price per share in Golden Spike’s (GSPRF) debt settlement agreement?

The debt settlement uses a deemed price of $0.05 per share. According to Golden Spike, 1,720,000 shares will be issued at this price to settle CAD$86,000 of debt owed to three directors and the corporate secretary, pending Canadian Securities Exchange approval.

Why is Golden Spike Resources (GSPRF) settling debt with shares instead of cash?

Golden Spike chose to satisfy outstanding indebtedness with shares to preserve its cash for operations. According to Golden Spike, using equity supports ongoing mineral exploration activities, including work at its Gregory River Property in Newfoundland and other low-risk jurisdictions.

Who are the creditors in Golden Spike’s July 2026 debt settlement (GSPRF)?

The creditors are three directors and the corporate secretary of Golden Spike Resources. According to Golden Spike, these related parties agreed to receive 1,720,000 shares in aggregate to settle CAD$86,000 of debt, subject to Canadian Securities Exchange approval and a statutory hold period.

Is there a lock-up or hold period on the Golden Spike (GSPRF) debt settlement shares?

Yes, all shares issued under the debt settlement will have a four-month plus one day statutory hold. According to Golden Spike, this restriction applies after closing, limiting immediate resale by the three directors and the corporate secretary receiving the shares.