Frontline Confirms Regulatory Approval and Cancellation of 14.7 MM Shares arising from the Closed Debt Settlement Agreement
Toronto, January 8, 2021 - Frontline Gold Corp. (TSXV:FGC) (“Frontline” or the “Company”) is pleased to announce that it has completed the cancellation of 14,709,688 shares as previously announced in executed Revised Debt Settlement Agreement on December 15, 2020. The transaction which was subject to FGC receiving TSX Venture Exchange approval was received and Computershare, the Company’s equity transfer agent, completed the cancellation of the shares on January 6, 2021. As of January 6, 2021, following the completed share cancellation, the Company has 126,753,673 common shares outstanding as confirmed with Computershare.
Background
The Company entered into a revised debt settlement agreement, announced December 15, 2020, with a historical arm's-length service provider/creditor whereby the company will make a one-time payment of $15,000 to the creditor. This payment replaces the terms of a March 31, 2014, news release that announced a debt settlement agreement between the company and the creditor (see below summary of original debt settlement agreement -- March 31, 2014).
The terms of the original agreement were a one-time payment of $50,000 and the issuance of 14,379,688 common shares of the company to clear approximately $561,000 of debt in relation to mining exploration agreements and services related to properties under option by the company. In addition, the company would maintain its options held in the gold properties in the Stewart region of British Columbia. On May 29, 2014, as publicly announced, the TSX Venture Exchange had approved the issuance of 14,379,688 common shares of the company at a deemed price of 5.2 cents per share. Based upon the TSX-V approval, the company had issued the 14,379,688 common shares of the company but were held in escrow and were never delivered to the creditor as some of the closing terms of the original agreement were never completed.
The new agreement was solely negotiated and agreed to by Frontline and Geofine, to which the outstanding debt owed is settled. Under this new agreement, the one-time payment of $15,000 will allow the company to seek approval from the TSX-V to cancel the 14,379,688 commons shares of the company that were previously issued and held in escrow, and to write off approximately $561,000 in debt in relation to mining exploration agreements and services relating to the creditor. Lastly, the company will relinquish all interests in the gold properties in the Stewart region of British Columbia that were held under options.
In addition, a total of 330,000 shares were also cancelled that were issued for share payment obligations that were owed on the gold properties in the Stewart region of British Columbia that were held under option as per the terms of the original debt settlement agreement.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company. The Company's properties include the optioned gold projects in Red Lake area of Ontario, Crooked Pine Gold Project (Ontario), Paint Lake Road Gold Project (Ontario) Cameron Lake Gold Project (Ontario), the Route 109 Gold Project and the Portage River Gold Project both in the Abitibi Region of Quebec, the Confederation Lake Project which is approx. 60 kms east of the Red Area and the Menderes gold project in the Izmir province of Western Turkey. Other Canadian exploration properties include other gold property groups in Ontario, the Whitehorse Island Mining Patents (Red Lake) including NSR’s within the Pickle Lake Mining Camp.
Frontline continues to actively seek projects, and additional investor/partner(s) in order to continue to build upon its properties and net smelter return royalties.
Further information about the Company is available on the Company’s website, www.frontlinegold.com , or our social media sites listed below:
Facebook: https://www.facebook.com/Frontline Gold Corp./
Twitter: https://twitter.com/frontlinegold
Linkedin: https://www.linkedin.com/company/frontline-gold-corp-fgc-
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
------------------------------------------------------------------------- |“Walter Henry” | |Contact: Walter Henry | | | |Phone: (416) 861-9090 | |Walter Henry, President&CEO| |Email: info@frontlinegold.com| |Frontline Gold Corp. | |Website: www.frontlinegold.com | | | |Frontline Gold Corp. (TSX-V: FGC) | | | |372 Bay Street, Suite 301 | | | |Toronto, Ontario M5H 2W9 | | | | | -------------------------------------------------------------------------
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