Toronto, Ontario--(Newsfile Corp. - January 15, 2018) - Hornby Bay Mineral Exploration Ltd. (TSXV: HBE) (the "Company") is pleased to announce that it has agreed to settle an aggregate of $1,150,000 of indebtedness owed to certain non-arm's length creditors through the issuance of an aggregate of 23,000,000 common shares ("Common Shares") of the Company at a price of $0.05 per Common Share (the "Debt Settlement"). All Common Shares issued in connection with the Debt Settlement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
The Debt Settlement constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ("MI 61-101"), as insiders of the Company will acquire the Common Shares issued pursuant to the Debt Settlement. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 due to the fact that the Company is in financial hardship.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Arvin Ramos, CFO
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 this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.