Mustang Minerals Corp. Shares for Debt Transaction
Toronto - Mustang Minerals Corp. (TSXV:MUM) (“Mustang” or the “Company”) today announced that it has applied to the TSX Venture Exchange to issue common shares relating to debt obligations pursuant to an audit of its flowthrough share issuances by the Canada Revenue Agency (“CRA). ( see press release dated November 13, 2015 ) The Company has applied to the TSXV to issue common shares at a share price of $0.02 per common share for 75% of the debt obligations of $467,532. The debt obligations relate to a reduction of Canadian Exploration Expense (“CEE”) renounced to subscribers and indemnification of the subscribers for tax due to the CRA audit of Mustang for the period 2010-2012. The Company is proposing to issue up to a total of 17,532,450 common shares for $350,650 of debt obligations and $116,883 cash in order to settle up to $467,532 of debt obligations relating to the CRA audit. The Company intends to resolve the CRA debt obligations in order to improve its working capital position to the point where it can move forward proactively with its mineral exploration and development projects.
The issuance of the common shares is subject to all applicable regulatory approvals, including the TSX Venture Exchange. In addition the common shares to be issued shall be subject to the approval of the shareholders of Mustang at its annual and special meeting to be held June 7, 2017 not including any insiders of Mustang who are eligible to receive debt settlement shares. Debt settlement is subject to the final agreement of the subscribers to whom Mustang is indebted. The Common Shares to be issued pursuant to the Shares for Debt Transaction will be subject to a four-month hold period.
The shares issuable will be subject to a four-month hold period. The Company may settle other similar debt obligations relating to the Indemnities through the issuance of securities, although there can be no assurances that the Company will be able to reach agreements with any other indemnified parties in this regard. In addition certain shareholders of the Company have had the CEE reduced by CRA but have not been reassessed by CRA which may present further obligations to Mustang in the future.
About Mustang Minerals
Mustang owns the mineral rights to the Makwa Nickel Property and the Mayville Property both located in the Bird River Greenstone Belt in southeastern Manitoba. The Company completed a PEA on the Makwa-Mayville Project in 2014. The Company also controls the East Bull Lake Property west of Sudbury prospective for PGM and the Bannockburn Nickel Property near Matachewan.
To find out more about Mustang Minerals Corp. (TSX-V: MUM)
visit our website at www.mustangminerals.com or:
Telephone: 416-955-4773 email: info@mustangminerals.com
We seek safe harbour
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, “forward-looking statements”). Such forward-looking statements may include the Company’s plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company’s Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Neither the TSX Venture Exchange nor it Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.