Pancontinental Uranium Announces Debt Settlement
TORONTO, ONTARIO--(Marketwired - Jan 7, 2016) - Pancontinental Uranium Corp. (the "Company") (NEX:PUC.H) announces that it has entered into debt settlement agreements with creditors of the Company pursuant to which the Company has agreed to issue an aggregate of 856,000 common shares at a deemed price of $0.05 per common share in order to settle certain obligations (the "Debt Settlement"). The Company decided to satisfy this outstanding indebtedness with common shares in order to preserve its cash.
Closing of the Debt Settlement is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the NEX, and the Company will issue the common shares once the Debt Settlement has been approved by the NEX. All securities issued in connection with the Debt Settlement will be 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 within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101") as an insider of the Company received 480,000 common shares. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the common shares being issued to insiders in connection with the Debt Settlement does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Debt Settlement because the Company wanted to improve its financial position as expeditiously as possible.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark
President & CEO
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.
Contact
Pancontinental Uranium Corp.
Rick Mark
President and CEO
Tel: 416 293 8437
Fax: 416 293 3957
www.Panconu.com
