Glen Eagle Resources Inc. (the “ Corporation ”) (TSXV:GER) (OTC:GERFF) is pleased to announce that it agreed to issue 4,045,066 Shares (the ” Debt Shares “) on a “shares-for-debt” basis in settlement of debts of $250,000 (the ” Debt “) owing to Mr. Eric Sprott and Mr. Denis Lavigueur (the “ Creditors ”). The Debt Shares are being issued at a deemed price of $0.0821 per share, in accordance with the policies of the TSX Venture Exchange (the ” TSX-V “).
The issuance of the Debt Shares to the Creditors will constitute a “related party transaction” within the meaning of the TSX-V Policy 5.9 (the ” Policy “) and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (” MI 61-101 “) adopted in the Policy. The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the Debt Shares, nor the Debt, exceeds 25% of the Company’s market capitalization (as determined under MI 61-101).
The issuance of the Debt Shares is subject to the approval of the TSX-V. Any Debt Shares issued will be subject to a hold period which will expire on the date that is four months and one day from the date of issue.
ABOUT GLEN EAGLE RESOURCES INC.
Glen Eagle Resources Inc. is a small producer and an exploration company of precious metals in Canada and the central America area.
For more information, please contact:
Jean Labrecque
President
1-514-808-9807