Roscan Gold Announces Extension to Promissory Notes
Rhea-AI Summary
Roscan Gold (TSXV: ROS) (FSE: 2OJ) (OTCQB: RCGCF) has announced its intention to extend the maturity date of its outstanding secured subordinate promissory notes, totaling $1,000,000. The extension will move the maturity date from September 11, 2024, to September 11, 2025. This Proposed Amendment is considered a related party transaction as insiders hold $400,000 of the Notes. Roscan is relying on exemptions from valuation and minority shareholder approval requirements. The company did not file a material change report 21 days in advance due to recent settlement of details. The amendment is subject to customary closing conditions and regulatory approvals, including from the TSX Venture Exchange.
Positive
- Extension of promissory notes maturity date by one year, potentially improving short-term liquidity
- Reliance on exemptions from valuation and minority shareholder approval requirements, simplifying the process
Negative
- Related party transaction involving $400,000 of the Notes held by insiders
- Delay in filing material change report, which could be seen as lack of transparency
- Extension of debt obligations, potentially indicating cash flow challenges
News Market Reaction
On the day this news was published, RCGCF gained 16.00%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - September 6, 2024) - Roscan Gold Corporation (TSXV: ROS) (FSE: 2OJ) (OTCQB: RCGCF) ("Roscan" or the "Company") announces that, further to its press release of March 11, 2024, it intends to extend the maturity date of its outstanding secured subordinate promissory notes in the aggregate of
The Proposed Amendment is considered a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as insiders of the Company hold an aggregate of
The Proposed Amendment is subject to customary closing conditions and approvals of applicable securities regulatory authorities, including the TSX Venture Exchange.
About Roscan
Roscan Gold Corporation is a Canadian gold exploration company focused on the exploration and acquisition of gold properties in West Africa. The Company has assembled a significant land position of
For further information, please contact:
Nana Sangmuah
President & CEO
Tel: (416) 900-1412
Email: info@Roscan.ca
Forward Looking Statements
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedarplus.ca. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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/222460
FAQ
What is the new maturity date for Roscan Gold's promissory notes?
How much of Roscan Gold's promissory notes are held by insiders?
What exemptions is Roscan Gold relying on for this transaction?
What approvals does Roscan Gold need for the promissory notes extension?
