Sage Gold Announces Proposed Shares for Debt Transaction
Sage Gold Announces Proposed Shares for Debt Transaction
– Momentum Public Relations –
Press Release: March 18, 2016
Sage Gold Inc. (TSX VENTURE:SGX) has agreed to settle obligations of $76,839 owed to 7 insiders and $342,300 owed to 12 vendors with $250,954 in shares, for services rendered to the Corporation by issuing 5,019,072 common shares based on an agreed price of $0.05 per common share. The shares issued pursuant to the debt settlement transactions will be subject to a four month and one day statutory hold period. The shares for debt transactions remain subject to final TSX Venture Exchange approval.
Seven (7) of the lenders are insiders of Sage, namely N. Lees, President & CEO $15,000, W. Love, VP Business Development $13,839, D. McDonald, Chief Financial Officer $7,500, P. J. Mars, Chairman $10,000, P. Bojtos, Director $10,000, P. Freeman, Director $10,000, and G. Robertson Director $10,000, thereby making seven (7) of 19 shares for debt transactions (a total of 1,536,772 common shares in satisfaction of $76,839 of indebtedness) “related party transactions” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Each of the proposed shares for debt transactions are exempt from the formal valuation approval requirements of MI 61-101 as none of the securities of Sage are listed on a prescribed stock exchange. The proposed shares for debt transactions are exempt from the minority shareholder approval requirements of MI 61-101 as at the time the transactions were agreed to, neither the fair market value of the transactions, nor the fair market value of the consideration for, the transactions, insofar as it involves interested parties, exceeded 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Sage’s market capitalization.
About Sage Gold
Sage is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} polymetallic owned Lynx property and other exploration properties in the Beardmore-Geraldton Gold Camp and the Clavos Gold property in Timmins. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.