Western Metallica to issue six million shares for debt

Executive Summary

• Western Metallica Resources Corp. entered into settlement agreements with three creditors, extinguishing $300,000 of debt in exchange for six million common shares at a deemed price of $0.05 per share.
• The transaction is pending approval by the TSX Venture Exchange and includes a statutory hold period on the issued shares lasting four months plus one day after closing.
• The settlement reduces outstanding indebtedness while significantly increasing the company’s share count, potentially diluting existing shareholders.

Key Details

• Debt extinguished: $300,000 total across three bona‑fide creditors.
• Consideration: Issuance of 6,000,000 common shares at a deemed price of $0.05 per share.
• Share issuance impact: Approximate dilution of existing shareholders based on current outstanding share count (details not disclosed).
• Regulatory condition: Settlement subject to approval by the TSX Venture Exchange.
• Statutory hold period: Shares issued will be locked for 4 months + 1 day from the closing date of the settlement.
• Purpose: To eliminate a portion of the company’s indebtedness and improve balance‑sheet strength.

Notable Quotes

(No direct quotes were provided in the release.)