KO Gold Announces Debt Settlement

Executive Summary

• KO Gold Inc. entered into settlement agreements to extinguish $493,471.24 of outstanding debt by issuing 2,467,356 common shares at a deemed price of $0.20 per share.
• Insiders will settle $282,871.24 of the indebtedness through issuance of 1,414,356 shares, qualifying as a related‑party transaction under MI 61‑101.
• Upon completion, the company’s balance sheet will be strengthened by removal of the settled liabilities; the issued shares are subject to a statutory hold period of four months and one day.

Key Details

• Total debt to be settled: $493,471.24 (includes management and contractor fees).
• Aggregate common shares to be issued: 2,467,356 shares at a deemed price of $0.20 per share.
• Statutory hold period on the newly issued securities: four months + one day.
• Insider participation: $282,871.24 settled via issuance of 1,414,356 common shares.
• The insider transaction is treated as a “related party transaction” under Multilateral Instrument 61‑101; the company relies on exemptions from formal valuation and minority shareholder approval because the fair market value does not exceed 25 % of market capitalization.
• Post‑settlement effect: elimination of the $493,471.24 liabilities, resulting in a stronger balance sheet.

Notable Quotes

“The Debt Settlement will materially improve our financial position and allow us to focus on advancing our exploration program,” – Greg Isenor, President & CEO.