Western Metallica Resources Announces Share Consolidation and Debt Settlement
WESTERN METALLICA ANNOUNCES CONSOLIDATION AND SHARES-FOR-DEBT TRANSACTION
BenzingaImage: Benzinga
Western Metallica Resources Corp. has announced a share consolidation of one post-Consolidation share for every five pre-Consolidation shares and a shares-for-debt agreement to settle $370,000 in debt. This move aims to optimize capital structure and enhance financial flexibility for future growth.
- 01Western Metallica will consolidate shares on a 5:1 basis.
- 02The company will settle $370,000 of debt through a shares-for-debt agreement.
- 03The consolidation is subject to approval from the TSX Venture Exchange and shareholders.
- 04CEO Greg Duras will become a control person after the debt settlement.
- 05The company aims to strengthen its balance sheet for future initiatives.
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Western Metallica Resources Corp. (TSXV:WMS) announced a 5:1 share consolidation, meaning shareholders will receive one post-Consolidation share for every five shares they currently hold. This consolidation is aimed at optimizing the company's capital structure and enhancing long-term shareholder value. Additionally, the company has entered into a shares-for-debt agreement to settle $370,000 of outstanding debt by issuing 7,400,000 pre-Consolidation shares, which translates to 2,466,667 post-Consolidation shares at a deemed price of $0.05 per share. Following the consolidation, the total number of outstanding shares is expected to decrease from 8,436,199 to 2,812,066 before the debt settlement, and to 5,278,733 after. CEO Greg Duras will hold 56.4% of the shares post-settlement, classifying him as a control person under securities laws, necessitating disinterested shareholder approval for the debt settlement. The company plans to seek this approval at its upcoming annual and special meeting. Western Metallica is focused on mineral resource exploration and development, with its principal asset being the Penedela Gold Property in Asturias, Spain.
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This consolidation and debt settlement may improve Western Metallica's financial stability, potentially leading to increased investment and growth in its mining projects, benefiting shareholders and stakeholders involved in the company's operations.
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