Toronto, Ontario--(Newsfile Corp. - February 22, 2018) - Hornby Bay Mineral Exploration Ltd. (TSXV: HBE) (the "Company") is pleased to announce, further to its press release of January 15, 2018, the Company settled 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.
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 an insider of the Company acquired 20,413,089 of 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.
As a result of the Debt Settlement, James Brady, the President and director of the Company, beneficially owns an aggregate of 30,232,789 Common Shares, representing approximately 38% of the issued and outstanding Common Shares of the Company.
Mr. Brady acquired the Common Shares for investment purposes and may, depending on market and other conditions, increase or decrease his beneficial ownership, control or direction over other securities of the Company, through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.
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.