Champion Electric Announces its Intention to Complete a Shares for Debt Transaction

Executive Summary

• Champion Electric Metals Inc. announced a debt settlement whereby $440,063.68 of creditor obligations will be satisfied by issuing 44,006,368 common shares at $0.01 per share.
• The newly issued shares are subject to a four‑month hold period and a twelve‑month contractual escrow release.
• Completion of the transaction remains pending final acceptance by the Canadian Securities Exchange (CSE).

Key Details

• Debt Settlement Amount: $440,063.68 owed to arm’s length creditors.
• Shares Issued: 44,006,368 common shares at a price of $0.01 per share (“Debt Settlement”).
• Hold Period: Shares will be subject to a four‑month hold period from issuance.
• Escrow Release: Twelve‑month contractual escrow release beginning on the date of issuance.
• Regulatory Condition: Transaction is subject to final acceptance by the Canadian Securities Exchange.
• Purpose: To settle outstanding creditor obligations and reduce cash outflow.

Notable Quotes

“We believe this debt settlement will strengthen our balance sheet while preserving liquidity for continued exploration activities,” – Nicholas Konkin, Interim President and CEO.