Spanish Mountain Gold Ltd. Advances Project with Significant Debt Settlement Agreement
- Spanish Mountain Gold Ltd. settles $379,720 debt with Whittle Consulting, easing financial burdens for project advancement.
- The company will pay $14,320 in cash and issue over 2 million shares to settle the debt.
- Spanish Mountain Gold aims for a new technical report to guide construction decisions by 2027, emphasizing sustainability.
Spanish Mountain Gold Ltd. Secures Debt Settlement to Advance Project Development
Spanish Mountain Gold Ltd. (TSX-V: SPA | FSE: S3Y | OTCQB: SPAUF) announces a significant step forward in its financial restructuring with a debt settlement agreement with Whittle Consulting Ltd., an arm's length creditor. The agreement resolves a total of $379,720 in outstanding debt, primarily associated with past consulting services. As part of the settlement, Spanish Mountain Gold agrees to make a cash payment of $14,320 and issue 2,110,919 common shares priced at $0.1731 each. This financial maneuver not only alleviates a considerable debt burden but also positions the company strategically as it seeks to advance its flagship Spanish Mountain Gold Project in the Cariboo Gold Corridor of British Columbia.
The completion of the debt settlement is subject to customary conditions, including approval from the TSX Venture Exchange. The issuance of shares will be governed by a statutory hold period of four months plus one day, which underscores the company’s commitment to adhering to regulatory requirements. Clearing this debt provides Spanish Mountain Gold with a more robust financial footing, enabling it to focus on key objectives, particularly the anticipated release of a new NI 43-101 Technical Report within the next 44 days. This report will contain a de-risked and optimized Preliminary Economic Assessment (PEA) alongside an updated Mineral Resource Estimate (MRE), essential for guiding the company toward a construction decision by 2027.
As Spanish Mountain Gold continues its journey towards establishing a new gold mine, the company emphasizes its dedication to fostering strong community and Indigenous relations. This commitment is pivotal as it seeks to leverage advanced technology to ensure environmentally sustainable mining practices in Canada. The forthcoming technical report will not only enhance the project's viability but also reflect the company's strategic focus on sustainability and community engagement, which are increasingly critical in today's mining landscape.
In addition to its financial developments, Spanish Mountain Gold remains focused on its operational goals, aiming to optimize the economic potential of its gold project. The company is navigating the complexities of the mining sector with an eye on responsible practices that benefit both the environment and local communities. This strategic approach is expected to resonate well with stakeholders and investors alike, as they anticipate the outcomes of the upcoming technical report.
As Spanish Mountain Gold charts its path forward, the recent debt settlement marks a pivotal moment, enabling the company to consolidate its resources and continue its mission of becoming a leader in the Canadian gold mining industry. The focus on sustainable practices and community relations positions the company favorably within a sector that increasingly values responsible resource development.
