The settlement involves a non-arm's length creditor identified as the spouse of CEO Reno Calabrigo. Under Multilateral Instrument 61-101, this arrangement qualifies as a related party transaction. However, the company bypassed formal valuation and minority shareholder approval requirements, citing an exemption for transactions valued below 25% of the firm's market capitalization.
Barranco Gold Mining Clears $250,000 Debt Through Share Issuance
Vancouver-based Barranco Gold Mining Corp. has finalized a debt settlement agreement, issuing 390,625 common shares to retire $250,000 in outstanding liabilities. The transaction, priced at $0.64 per share, allows the junior explorer to preserve cash reserves for upcoming operations at its King Property in British Columbia.
Directors moved to expedite the closing to maintain working capital, with Calabrigo recusing himself from deliberations regarding the agreement. The newly issued shares are now subject to a statutory four-month hold period. Barranco Gold continues to focus its resources on exploration activities within the Nicola and Similkameen Mining Divisions.
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