Gelum Resources to settle $800,897 debt with shares

Executive Summary

• Gelum Resources Ltd. has arranged to settle up to $800,897.87 of outstanding debt by issuing up to 16,017,957 common shares at a deemed price of $0.05 per share.
• The settlement includes certain insiders and is structured as a related‑party transaction exempt from formal valuation and minority‑approval requirements under Multilateral Instrument 61-101.
• All newly issued shares will be subject to a four‑month‑plus‑one‑day hold period.

Key Details

• Debt Amount: Up to $800,897.87 of outstanding obligations.
• Share Issuance: Up to 16,017,957 common shares at a deemed price of $0.05 per share.
• Consideration: Shares issued in settlement of debt; no cash component.
• Related‑Party Aspect: Settlement includes certain insiders; qualifies as a related‑party transaction under MI 61-101.
• Exemption Basis: Company relies on exemptions from formal valuation and minority‑approval requirements per sections 5.5(a) and 5.7(1)(a) of MI 61‑101 because the fair market value does not exceed 25 % of Gelum’s market capitalization.
• Hold Period: All shares issued to insiders will be subject to a four‑month‑plus‑one‑day lock‑up before they may be transferred or sold.

Notable Quotes

(No executive quotes were provided in the release.)