Thunder Mountain to issue up to 1.57M shares for debt

Thunder Mountain Gold, Inc. has approved the issuance of up to 1,578,036 common shares to settle outstanding compensation and debt obligations totaling $1,104,625 (U.S.) owed to the company’s President and Chief Executive Officer and certain former service providers, including one former officer. The transaction is classified as a related party transaction under Multilateral Instrument 61-101.

Under the terms of the agreement, 670,714 shares were issued to the insider to satisfy $469,500 (U.S.) of the debt. The remaining shares were issued to other former service providers. The deemed price per share for the transaction is 70 U.S. cents ($1.00 Canadian), with the total debt settlement amounting to $1,104,625 (U.S.) or $1,578,036 (Canadian).

The issuance relies on subsections 5.5(a) and 5.7(1)(a) of MI 61-101 for exemption from valuation requirements and minority approval, as the insider's participation does not exceed 25% of the company's market capitalization. Completion of the transaction is subject to approval by the TSX Venture Exchange. Additionally, the issued shares are subject to a four-month hold period per TSX Venture Exchange policies and applicable Canadian securities legislation.