Stock Symbol: SGF: TSX
SASKATOON, Dec. 4, 2014 /CNW/ - Shore Gold Inc. ("Shore" or the "Company") wishes to announce that it has settled an outstanding amount owed by Wescan Goldfields Inc. ("Wescan") to the Company. As a result of this settlement the Company has been issued 4,511,076 common shares of Wescan ("Wescan Shares") at a price of $0.05 per Wescan Share. The Wescan Shares acquired pursuant to the settlement represent approximately 16.9% of the issued and outstanding Wescan Shares. This share-for-debt settlement agreement, which was approved by the TSX Venture Exchange, is pursuant to the securities for debt exemption in section 2.14 of National Instrument 45-106 Prospectus and Registration Exemptions. Immediately after the issuance of the 4,511,076 Wescan Shares, Shore beneficially owned and controlled an aggregate of 5,806,626 Wescan Shares, representing approximately 21.7% of the issued and outstanding Wescan Shares on an undiluted basis and approximately 18.2% on a fully diluted basis. The securities issued to Shore as a result of this settlement are subject to a hold period of four months.
The purpose of this settlement was to settle outstanding amounts owed to Shore by Wescan as Wescan did not have cash available to repay these amounts. Shore has no further intention of acquiring additional securities of Wescan.
Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Exchange under the trading symbol "SGF".
This press release is issued pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires a report to be filed with regulatory authorities in each of the jurisdictions in which Wescan is a reporting issuer.
SOURCE: Shore Gold Inc.
For further information: Joseph Dickson, Investor Relations Manager at #300 - 224 4th Avenue South, Saskatoon, Saskatchewan, S7K 5M5; (306) 667-3505 and www.shoregold.com