Indigo Obtains Approval for Loans

Rhea-AI Summary

Indigo Exploration has received TSX Venture Exchange approval for loans totaling $170,000, as announced on October 25, 2024. The loans come with a 10% annual interest rate and a one-year term. The company will use the funds for exploration work on its Hot Property uranium project in Wyoming's Shirley Basin and for working capital. The company issued 680,000 bonus shares to lenders at $0.05 per share, with a hold period until March 14, 2025. Two company directors each provided $10,000 loans, constituting related party transactions under MI 61-101, with exemptions from formal valuation and minority shareholder approval requirements.

Positive

• Secured $170,000 in financing for exploration and working capital
• Obtained TSX Venture Exchange approval for the loans

Negative

• High interest rate of 10% on loans
• Share dilution through issuance of 680,000 bonus shares
• Related party transactions with directors providing loans

News Market Reaction

-29.77%

1 alert

-29.77% News Effect

On the day this news was published, IXIXF declined 29.77%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - November 14, 2024) - Indigo Exploration Inc. (TSXV: IXI) (OTCQB: IXIXF) (FSE: INEN) (the "Company") is pleased to announce that the TSX Venture Exchange has approved loans to the Company in the aggregate amount of $170,000 as previously announced on October 25, 2024. The loans bear interest of 10% per annum and have a one-year term. The Company plans to use the proceeds of the loans for exploration work on its Hot Property, a uranium project located in the past producing Shirley Basin of Wyoming, and for general working capital purposes.

The Company issued an aggregate of 680,000 bonus shares to the lenders at a deemed price of $0.05 per share. The bonus shares are subject to a hold period expiring on March 14, 2025.

Two of the lenders are directors of the Company and have provided loans of $10,000 each. The participation of each insider constitutes a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company will be relying on exemptions from the formal valuation requirements of section 5.4 of MI 61-101 and minority shareholder approval requirements of section 5.6 of MI 61-101. As the fair market value of the related party's participation is not more than 25% of the Company's market capitalization, the related party transactions are exempt from the formal valuation requirements pursuant to subsection 5.5(a) of MI 61-101 and from the minority approval requirements pursuant to subsection 5.7(1)(a) of MI 61-101.

On Behalf of the Board of Directors,

"Paul Cowley", President and CEO

For further information, please contact: Paul Cowley: (604) 340-7711 Website: www.indigoexploration.com

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. The forward-looking statements contained in this press release are made as of the date hereof.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230048

FAQ

What is the amount and terms of the loans approved for Indigo Exploration (IXIXF)?

Indigo Exploration received approval for $170,000 in loans with a 10% annual interest rate and one-year term.

How many bonus shares did Indigo Exploration (IXIXF) issue to lenders?

The company issued 680,000 bonus shares to lenders at a deemed price of $0.05 per share, with a hold period until March 14, 2025.

What will Indigo Exploration (IXIXF) use the loan proceeds for?

The loan proceeds will be used for exploration work on the Hot Property uranium project in Wyoming's Shirley Basin and for general working capital purposes.