LAZO, BC / ACCESSWIRE / April 25, 2019 / Troy Energy Corp. (the "Corporation" or "Troy") announces that it has reached agreement with three creditors to convert outstanding payables into common shares of the Corporation. The creditors will receive an aggregate of 3,550,000 common shares at a deemed price of $0.05 per share in settlement of $177,500 of indebtedness. Of the aforementioned indebtedness, $127,500 represents cash payments owing to BEC International Corp. (a private company that is an Insider of Troy and is controlled by William MacNeill) in connection with the Corporation's acquisition of three mining leases in respect of the Corporation's Yellowknife Gold Belt interests (for details of such acquisition, see the Corporation's press release dated August 25, 2017). The remaining $50,000 of indebtedness represents shareholder loans, $25,000 of which is owing to William MacNeill. This transaction is subject to regulatory approval. In accordance with applicable securities laws, the common shares to be issued under these agreements will be subject to four-month hold periods.
The Corporation's main exploration property consists of three mining leases and seven mineral claims situated in the Yellowknife Gold Belt, located 90km north of Yellowknife. The property saw drilling during the late 1980's and again during the period 2005 to 2008. A total of 117 holes totaling more than 13,000 metres of diamond drilling have been reported on the leases within which the Main zone is situated. Highlights of the drilling on the Main zone include intercepts of 12.34 g/t gold of 8.25 metres. At the Max zone, located south of the Main zone a single hole collared in bedrock that assayed 16.87 g/t gold over 1.5 metres from surface with further gold intercepts down the hole, including: 1.50 metres assaying 9.29 g/t gold.
With the participation of insiders in the shares for debt transaction, this transaction constitutes a related party transaction under Multilateral Instrument 61-101 – "Protection of Minority Security Holders in Special Transactions". Exemptions are available from the minority shareholder approval and valuation requirements set forth in the foregoing Multilateral Instrument.
Forward Looking Statements
Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION, PLEASE CONTACT:
President and Chief Executive Officer,
Phone: (306) 229-5029
James Owen, Troy Energy Corp.
Chief Financial Officer
Phone: (250) 465-1806
Neither 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.
SOURCE: Troy Energy Corp.