FireFox Announces Shares for Debt Transaction

Executive Summary

• FireFox Gold Corp. entered into a Debt Settlement Agreement with a company director to settle C$142,000 of deferred consulting fees.
• The settlement consists of C$70,000 cash and the issuance of 144,000 common shares at a deemed price of C$0.50 per share (total equity consideration of C$72,000).
• The share issuance is a private placement subject to a four‑month hold period and TSXV approval; it qualifies as an exempt related‑party transaction under MI 61‑101.

Key Details

• Debt Amount: C$142,000 total consulting fee debt.
• Cash Component: C$70,000 paid to the creditor as partial satisfaction of the debt.
• Equity Component: 144,000 fully paid common shares issued at a deemed price of C$0.50 per share (equivalent to C$72,000).
• Transaction Structure: Private placement of shares to an insider (director/creditor); related‑party transaction exempt from formal valuation and minority shareholder approval because the fair market value is ≤ 25 % of market capitalization.
• Hold Period: Shares subject to a four‑month lock‑up before they may be sold or transferred.
• Regulatory Conditions: Closing pending TSX Venture Exchange (TSXV) acceptance; transaction must comply with MI 61‑101 exemptions.
• Purpose: Settlement of deferred consulting fees; no additional cash raised beyond the C$70,000 payment.

Notable Quotes

(No direct quotes from management were included in the release.)