KO Gold to issue 2.46 million shares for debt

Executive Summary

• KO Gold Inc. has entered into debt settlement agreements to extinguish outstanding liabilities totaling $493,471.24 owed to various creditors, including management and contractors.
• The company will settle these debts by issuing an aggregate of 2,467,356 common shares at a deemed price of $0.20 per share.
• The transaction includes a related party component where two insiders settle $282,871.24 of debt, constituting a transaction under Multilateral Instrument 61-101.

Key Details

• Total Debt Settled: $493,471.24.
• Shares Issued: Aggregate of 2,467,356 common shares.
• Deemed Price: $0.20 per common share.
• Insider Participation: Two insiders settled $282,871.24 of the total indebtedness through the issuance of 1,414,356 common shares.
• Regulatory Status: The insider participation constitutes a related party transaction under Multilateral Instrument 61-101. The company relies on exemptions from formal valuation and minority shareholder approval requirements (sections 5.5(a) and 5.7(1)(a)) as the fair market value of insider participation does not exceed 25% of the company's market capitalization.
• Share Restrictions: Securities issued have a statutory hold period of four months and one day.
• Financial Impact: The company states the balance sheet will be strengthened through the elimination of the applicable liabilities.

Notable Quotes

• "Following closing of the debt settlement, the company's balance sheet will be strengthened through the elimination of the applicable liabilities"