KO Gold closes $493,471 debt settlement

Executive Summary

• KO Gold Inc. has closed debt settlement agreements with certain creditors to extinguish outstanding debts totaling $493,471.24, including fees owed to management and contractors.
• In full satisfaction of these debts, the company issued an aggregate of 2,467,356 common shares at a deemed price of 20 cents per share.
• The transaction involves related party participation by two insiders, including Gregory Isenor, who acquired additional shares, triggering an early warning disclosure requirement due to his ownership crossing the 10% threshold.

Key Details

• Total Debt Settled: $493,471.24 (including outstanding fees owed to management and contractors).
• Shares Issued: Aggregate of 2,467,356 common shares.
• Deemed Price: 20 cents per common share.
• Insider Participation: Two insiders settled an aggregate of $282,871.24 of indebtedness through the issuance of 1,414,356 common shares.
• Regulatory Exemptions: The company relied on exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 (sections 5.5(a) and 5.7(1)(a)), citing that the fair market value of insider participation does not exceed 25% of the company's market capitalization.
• Statutory Hold: The issued shares are subject to a statutory hold period of four months and one day.
• Early Warning Disclosure: Gregory Isenor acquired 794,216 common shares as part of the settlement.
• Ownership Change (Gregory Isenor):
  • Pre-settlement ownership: 2,638,000 shares (~10.80%).
  • Post-settlement ownership: 3,432,216 shares (~12.76%).
• Compliance Note: The early warning report is being filed to remedy an inadvertent prior non-compliance with early warning requirements.

Notable Quotes

• None provided in the text.