Northern Lights Announces Proposed Shares for Debt Settlement

Executive Summary

• Northern Lights Resources Corp. proposes a debt settlement by issuing up to 1,300,000 common shares at a deemed price of $0.08 per share to extinguish approximately $104,000 of outstanding indebtedness.
• The transaction is expected to improve the Company’s balance sheet and does not create a new controlling shareholder.
• Settlement shares will be subject to a statutory hold period of four months and one day; closing is anticipated no earlier than five business days after this release, pending CSE approval.

Key Details

• Settlement Shares: Up to 1,300,000 common shares at $0.08 per share (deemed price).
• Total Debt Eliminated: Approximately $104,000 owed to various creditors, including directors and consultants.
• Related Party Component: Insiders will settle $35,000 of the debt; the transaction qualifies for exemptions under MI 61‑101 because neither the fair market value nor consideration exceeds 25% of market capitalization.
• Hold Period: All issued Settlement Shares subject to a statutory hold period of four months and one day from issuance date.
• Regulatory Conditions: Completion contingent upon receipt of required regulatory approvals, including CSE acceptance.
• Closing Timeline: Expected to close no earlier than five business days after the news release.
• Impact on Control: No new control person is expected to be created as a result of the settlement.

Notable Quotes

“The proposed Debt Settlement announced today represents an important step in strengthening the Company’s balance sheet. The willingness of creditors to accept shares at a premium to market reflects their support for Northern Lights, our underlying growth potential, and the relationships we have built.” – Luka Capin, Chief Executive Officer

All boilerplate, forward‑looking statements, and company background sections have been omitted for brevity.