Stockworks Gold settles $335,071 of debt with shares
Stockworks settles $335,000 of debt through an equity issuance, extending its financial runway as a cash-strapped explorer.
Stockworks Gold Inc. has entered into debt settlement agreements to resolve $335,071 in outstanding liabilities by issuing 3,350,715 units to creditors. Each unit comprises one common share and one-half of a common share purchase warrant. Warrant terms are set at 15 cents for the first 12 months and 20 cents for the second 12 months, with a 24-month exercise period.
The transaction includes a statutory hold period of 4 months and a voluntary restrictive legend of 12 months on 2,728,215 units. An additional 100,000 stock options were granted to an officer at a 10-cent exercise price with a 4-year term. The settlement is subject to TSX Venture Exchange approval and follows a May 2026 announcement regarding a $800,000 private placement and a separate $300,000 debt settlement.
Stockworks Gold Inc. (STW) issued a follow-up to its May 15, 2026 financing update, confirming its ongoing efforts to restructure its balance sheet through equity issuance. The company settled $335,071 in debt, a move that reduces immediate creditor pressure and mitigates near-term default risk, which is critical given the company's reported going-concern status.
The transaction carries a substantial dilutive impact, representing approximately 22.6% dilution to the current 14.85M share count, along with additional warrant overhang. The terms, including 15c/20c warrants, are consistent with prior financings and reflect the company's current depressed trading range, indicating no premium was negotiated. This news is expected, incremental, and necessary for operational continuity rather than a transformative event. It does not alter the fundamental exploration risk profile or provide immediate revenue.
Stockworks Gold Inc. is a junior exploration company focused on precious metals, headquartered in Vancouver, BC. Its flagship asset is the 100%-owned Pirenópolis Gold Project in Goiás, Brazil, situated in a mining-friendly jurisdiction within the Pan Brazilian Geological Belt. The project is an early-stage, greenfields exploration target with geological analogies to the giant Kinross Paracatu gold mine.
Recent exploration in December 2025 returned high-grade stream sediment assays up to 6.38 ppm Au, identifying three structural drill targets supported by drone-borne magnetic surveys. The company is also divesting its Cabin Lake gold property in the Northwest Territories to Fin Resources (Canada) Ltd. to streamline operations and focus capital on Brazil.