International Millennium Mining Corp. (TSX-V: IMI) (the “Company” or “IMMC”) announces that further to its March 31, 2020, press release, the Company has requested approval from the TSX Venture Exchange (the “Exchange”) to revise the terms of the shares for debt agreements it entered into in February and March 2020, to satisfy $317,990 in debt owed to certain creditors of the Company (the “Debt Settlement”), pursuant to temporary relief provisions of the Exchange Bulletin dated April 8, 2020, Temporary Relief of $0.5 Minimum Pricing Requirement.
Under the revised terms of the Debt Settlement agreements, the Company will issue 15,899,500 common shares (the “Shares”) at a deemed price of $0.02 per Share to certain creditors of the Company (the “Creditors”). The indebtedness includes $120,000 of debt owed to directors and officers of the Company, and $100,000 of debt owed to Cabo Drilling Corp., a company with a common director and officers. IMMC determined to satisfy the indebtedness with common shares in order to preserve its cash for working capital.
The issuance of the Shares to the Creditors is subject to a number of conditions, including the approval of the Exchange. All securities issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of issue.
As certain insiders participated in the Debt Settlement it is considered to be a “related party transaction” under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company intends to rely on the exemptions from the valuation and the minority approval requirements of MI 61-101 provided for in subsections 5.5(a) and 5.7(a) of MI 61-101, respectively, as the fair market value of the subject, and the consideration paid in the Debt Settlement, in each case, in relation to the interested parties, will not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101. All of the independent directors of the Company, acting in good faith, considered the transactions and have determined that the fair market value of the securities being issued to insiders, and the consideration being paid, is reasonable.
International Millennium Mining Corp. (TSX-V: IMI) is focused on the exploration and development of its Silver Peak silver-gold project in southwest Nevada. The Company’s common shares trade on the Exchange under the symbol: IMI.
ON BEHALF OF THE BOARD
“John A. Versfelt”
John A. Versfelt
President and CEO
Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Mr. John Versfelt, President & CEO of the Company at 604-527-8135.
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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 this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.