RICHMOND, BC, Aug. 29, 2014 /CNW/ - Kirkland Precious Metals Corp. (the "Company" or "KPM") wishes to announce that its Board of Directors has approved to settle an aggregate of $131,460 of indebtedness owed to two affiliated companies, Mineral Hill Industries Ltd ("MHI") and Nass Valley Gateway Ltd ("NVG") for a total of 2,629,200 common shares of KPM ("KPM-Shares"), at a deemed issuance price of $0.05 CAD per KPM-Shares. The companies are affiliated through three common directors and the debt was accumulated for administrative services and the sublease of office space provided to KPM since December 2012.
The Boards of Directors of MHI and NVG have agreed to settle their respective outstanding debts with 2,189,080 KPM-Shares issued to MHI and 440,120 KPM-Shares issued to NVG, respectively. All KPM-Shares issued in connection with the shares for debt transaction may be subject to a four month statutory hold period.
The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, based on a determination that the securities of the Company are not listed or quoted on any Stock Exchange inside or outside of Canada.
The settlements reached with MHI and NVG are important events for the Company, as it wishes to continue the process of improving its financial position by reducing its accrued liabilities, searching for a qualifying project and raising the necessary funds for working capital.
All statements included in this news release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or to revise them to reflect the occurrence of future unanticipated events.
SOURCE: Kirkland Precious Metals Corp.
For further information: Dieter Peter, President & CEO, Phone: 604-278-1132