Medaro Mining Announces Shares for Debt Settlement

Rhea-AI Summary

Medaro Mining (CSE: MEDA, OTC: MEDAF) has announced a debt conversion agreement dated February 4, 2024, to settle outstanding debt of $297,682 through the issuance of 3,166,826 common shares at $0.094 per share. The shares-for-debt transaction aims to improve the company's financial position by reducing existing liabilities.

The settlement requires approval from the Canadian Securities Exchange (CSE), and the issued shares will be subject to a four-month hold period from the date of issuance. The company confirmed that this debt settlement will not create a new control person, and no insiders are participating in the transaction.

Positive

• Reduces company liabilities by $297,682
• Preserves cash by settling debt with shares
• No creation of new control person

Negative

• Share dilution through issuance of 3,166,826 new shares
• Shares issued at relatively low price of $0.094

Vancouver, British Columbia--(Newsfile Corp. - February 5, 2025) - Medaro Mining Corp. (CSE: MEDA) (OTC Pink: MEDAF) (FSE: 1ZY) ("Medaro" or the "Company") is pleased to announce that it has entered into a debt conversion agreement (the "Agreement"), dated February 4, 2024, with certain creditors of the Company (the "Creditors") to settle a debt of $297,682 owing to the Creditors through the issuance to the Creditors of an aggregate of 3,166,826 common shares (each, a "Share") at a price of $0.094 per Share (the "Shares for Debt Transaction").

The debt settlement will not create a new control person nor are any insiders participating in the settlement. The Company wishes to complete the Shares for Debt Transaction to improve its financial position by reducing its existing liabilities.

The debt settlement transaction is subject to the approval of the Canadian Securities Exchange (the "CSE") and pursuant to the policies of the CSE, the Shares are subject to a hold period of four months from the date of issuance.

On Behalf of The Board of Directors,

Faizaan Lalani
Interim CEO & Director

About the Company
The Company is an exploration company based in Vancouver, BC, and holds options over the Darlin, Rapide, Lac La Motte and CYR South lithium properties in Quebec. The Company owns the James Bay Pontax project in Quebec and the Superb Lake lithium property located in Thunder Bay, Ontario. The Company is a party to a joint venture agreement that engages the Company in the development and commercialization of a new process to extract lithium from spodumene concentrate.

For more information, investors should review the Company's filings that are available at www.sedarplus.ca.

Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements regarding the Shares for Debt Transaction and the purpose thereof, are "forward-looking statements." These forward-looking statements reflect the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information
info@medaromining.com
604-602-0001

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239798

FAQ

How many shares is Medaro Mining (MEDAF) issuing in the February 2024 debt settlement?

Medaro Mining is issuing 3,166,826 common shares at $0.094 per share.

What is the total debt amount being settled by Medaro Mining (MEDAF) in February 2024?

Medaro Mining is settling a total debt of $297,682 through the shares-for-debt transaction.

What is the hold period for the shares issued in Medaro Mining's (MEDAF) debt settlement?

The shares issued in the debt settlement are subject to a four-month hold period from the date of issuance.

Will Medaro Mining's (MEDAF) February 2024 debt settlement create a new control person?

No, the debt settlement will not create a new control person, and no insiders are participating in the transaction.