ROUYN-NORANDA, QC, April 14, 2020 /CNW Telbec/ - Visible
Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V41) announces that it
intends to issue an aggregate of 3,575,200 common shares in
settlement of debts in an aggregate amount of $178,760. The debts resulted from exploration
services ($108,760) provided one of
its creditors (the "Debt Settlement"), and for management
services provided by a company controlled by Visible Gold's
President and Chief Executive Officer ($32,500) and a company controlled by Visible
Gold's Chief Financial Officer ($37,500), respectively (the "Insider Debt
Settlement"), from January 2019
to March 2020.
The Insider Debt Settlement is considered a "related party
transaction" as defined under Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Insider Debt Settlement
will be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as Visible Gold's securities are
not listed on any of the stock exchanges set out in Section 5.5(b)
of MI 61-101 and neither the fair market value of the common shares
to be issued to the company controlled by Visible Gold's President
and Chief Executive Officer and to the company controlled by
Visible Gold's Chief Financial Officer, nor the fair market value
of the services provided by such companies, exceeds 25% of Visible
Gold's market capitalization.
The common shares to be issued pursuant to the Debt Settlement
and the Insider Debt Settlement will be issued at a deemed price of
$0.05 per share and will be subject
to a four-month hold period pursuant to applicable securities
legislation and the policies of the TSX Venture Exchange.
The Board of Directors and Management of Visible Gold believe
that the proposed settlement of debts through the issuance of
common shares is in Visible Gold's best interests as it will allow
Visible Gold to preserve its cash position.
About Visible Gold Mines
Visible Gold Mines is a resource company focused on acquiring
and exploring precious metals in northwestern Québec, considered
one of the world's best jurisdictions for mining and exploration.
The Company has 22,239,339 shares outstanding.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of the release.
Website: www.visiblegoldmines.com
SOURCE Visible Gold Mines Inc.