Two recent agreements allowed Goldnev Resources (VSE) to settle debt by issuing shares and thereby eliminate its short-term debt.
Goldnev issued Prime Equities (VSE) 477,942 shares in return for the cancellation of $260,000 in debt. The stock was issued at a discount to the market price and is, therefore, subject to a 12-month hold from May 15, 1990.
Prime Equities is already the company’s largest shareholder with 3.8 million shares or about 36.68% of the issued shares. Once the settlement shares are issued, Prime will hold 4.29 million shares or about 39.5% of the company.
Prime Equities also has warrants to purchase an additional 1.2 million shares which, if exercised, would increase the company’s position in Goldnev to 45.6%.
Goldnev also settled a $100,000 debt to a contractor by issuing shares at a deemed price of 68 cents. The shares are not subject to a holding period.
Goldnev and Bethlehem Resources (TSE) jointly own the recently commissioned Goldstream copper-zinc mine near Revelstoke. The companies financed the mine’s startup through a $7-million line of credit from Nippon Mining and Sumitomo.
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