Asian Mineral Resources Settlement of Significant Outstanding Liabilities by Issuance of Common Shares
September 21 2018 - 11:23AM
Asian Mineral Resources Limited
(
the “Company”) (ASN-TSX Venture)
is pleased to announce today that it has entered into settlement
agreements pursuant to which the Company has agreed to issue
4,766,808 common shares at a price of $0.50 per share to extinguish
$2,383,404 of liabilities.
Duncan Blount, Chief Executive of the Company,
stated:
“We are pleased to have concluded the settlement
agreements, as the extinguishment of the outstanding liabilities
will improve the Company’s balance sheet, positioning the Company
for potential future capital investment as it explores
opportunities in resource base companies and other strategic
options. I would like to thank all our shareholders and our former
and current directors for all their support to the Company.”
Specifically, the Company intends to issue
shares as follows:
1.
Current Directors: 300,000 shares
The Company will issue 195,000 shares to Robin
Widdup and 105,000 shares to Christopher Castle in settlement of
unpaid directors’ fees.
2.
Former Directors: 385,000 shares
The Company will issue 105,000 shares to Michael
Brown, 130,000 shares to Martyn Buttenshaw, 105,000 shares to
Evgenij Iorich and 45,000 shares to Kate Southwell in settlement of
unpaid directors’ fees.
3.
CEO Compensation: 39,796 shares
The Company will issue 39,796 shares to Chief
Executive Officer Duncan Blount in settlement of outstanding
compensation pursuant to Mr. Blount’s employment agreement with the
Company.
4.
Settlement of Court Claim: 600,000 shares
The Company will issue 600,000 shares to Terence
Bates to settle a claim brought by Mr. Bates before the High Court
of New Zealand in respect of a dispute over a royalty interest from
smelter proceeds and sale of product in connection with the
Company’s historic operations in Vietnam.
5.
Pala Investments: 3,442,012 shares
The Company will issue 3,442,012 shares to Pala
Investments in order to settle amounts owing to Pala pursuant to
shareholder loans, advisory fees, travel re-imbursement and
secondment of personnel, all as set out in greater detail in the
Company’s most recent and historic financial statements.
The issuance of shares for the liabilities as
outlined above is subject to acceptance by the TSX Venture
Exchange. The shares may not be sold in Canada or through the
facilities of the TSX Venture Exchange for a period of four
months and one day from the date of issuance.
About AMR
AMR formerly owned and operated the Ban Phuc
Nickel Mine in Vietnam. Following a strategic review process, AMR
announced on July 17, 2018 the completion of the sale of the Ban
Phuc Nickel Mine and that it had entered into an option agreement
with Island Time Exploration Limited for the exclusive right to
acquire up to 75% interest in four mineral titles totalling 3,687
hectares situated east of Duncan in the Victoria Mining Division,
whose primary target is volcanogenic, polymetallic massive
sulphides. AMR will provide a further update on its progress with
this investment opportunity and any other new opportunities in due
course.
Forward-Looking
Statements
Statements made in this news release may be
forward-looking and therefore subject to various risks and
uncertainties. Such statements can typically be identified by
terminology such as ‘‘may’’, ‘‘will’’, ‘‘could’’, ‘‘should’’,
‘‘expect’’, ‘‘plan’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘intend’’,
‘‘possible’’, ‘‘continue’’, “objective” or other similar
expressions concerning matters that are not historical facts. In
particular, this press release contains forward-looking statements
pertaining to AMR’s efforts to secure future capital investment and
find new opportunities in resource base companies. Certain material
factors or assumptions are applied in making forward-looking
statements and actual results may differ materially from those
expressed or implied in such statements. AMR does not undertake to
update any forward-looking statements; such statements speak only
as at the date made.
Going Concern
Risk
As described in AMR’s most recent Management
Discussion & Analysis, the continuing operations of the Company
are dependent upon its ability to continue to raise adequate
financing, to commence profitable operations in the future, and
repay its liabilities arising from normal business operations as
they become due. There remains a significant risk that the Company
is unable to find alternative sources of financing for on-going
working capital requirements. These material uncertainties cast
significant doubt upon the Company’s ability to continue as a going
concern. Failure to obtain sufficient financing could force the
Company into reorganization, bankruptcy or insolvency proceedings.
Additional financing may not be available when needed or, if
available, the terms of such financing might not be favourable to
the Company and might involve substantial dilution to existing
shareholders. Failure to raise capital when needed would have a
material adverse effect on the Company’s ability to pursue its
business strategy, and accordingly could negatively impact the
Company’s business, financial condition and results of
operations.
For further
information:
Paula KemberChief Financial OfficerTelephone:
(416) 360-3412
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Asian Mineral Resources (TSXV:ASN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Asian Mineral Resources (TSXV:ASN)
Historical Stock Chart
From Jul 2023 to Jul 2024