Millennium Silver issues 22.5 million debt shares

Executive Summary

• Millennium Silver Corp. has entered into shares-for-debt agreements to settle $337,622 in total indebtedness owed to various creditors, including insiders.
• The company will issue 22,508,132 common shares at a deemed price of 1.5 cents per share to satisfy the debt, aiming to preserve cash for working capital.
• The transaction is classified as a related-party transaction under Multilateral Instrument 61-101, with independent directors determining the consideration to be reasonable and relying on specific exemptions from valuation and minority approval requirements.

Key Details

• Total Debt Settled: $337,622
• Shares Issued: 22,508,132 common shares
• Deemed Price Per Share: $0.015 (1.5 cents)
• Use of Proceeds: Preservation of cash for working capital
• Hold Period: Four months and one day from the date of issue
• Regulatory Status: Related-party transaction under Multilateral Instrument 61-101; exemptions from valuation and minority approval requirements relied upon as the fair market value of securities issued to insiders does not exceed 25% of the company's market capitalization.
• Breakdown of Debt:
  • $190,375 owed to directors, former directors, and officers.
  • $122,247 owed to a firm where the Chief Financial Officer is a partner.
  • $25,000 owed to a family trust related to the former Chief Executive Officer.
• Conditions: Issuance is subject to exchange approval.

Notable Quotes

• None provided in the text.