St. James Gold Corp. Finalizes Settlement Agreement with Florin
St. James Gold Corp. Secures Settlement Completion
St. James Gold Corp. (the “Company” or “St. James”) (TSXV: LORD) (OTCQB: LRDJF) (FSE: BVU3) is excited to announce the successful closing of the Final Release and Settlement Agreement with Florin Resources Inc. This significant agreement highlights the Company's commitment to clear past obligations and focus on its future developments. The settlement, conveyed recently, revolves around secured promissory notes originally highlighted several months ago.
Details of the Settlement Agreement
The terms of the Settlement Agreement are structured to satisfy obligations and foster growth. Specifically, St. James has re-assigned two secured promissory notes with a principal amount totaling $1,176,598.76 to reflect this agreement. Negotiations have led to an arrangement beneficial for both parties, ensuring a smooth transition towards future endeavors.
Considerations for Settlement
The settlement included several key aspects aimed at facilitating a comprehensive resolution. Firstly, a cash payment of $435,000 was made to Florin. Additionally, the Company issued a total of 2,105,264 common shares to settle debt at a price of $0.095 per share, which took effect alongside the settlement.
Furthermore, the Company agreed to lift its objection regarding the release of 850,000 common shares held in escrow, promoting transparency and mutual goodwill. Another notable aspect of this agreement is the transfer of the Company’s Quinn Lake Property to Florin, marking a decisive move towards optimal asset management.
Participation in Upcoming Private Placement
Moreover, as part of the Settlement Agreement, Florin has committed to participate with 1,052,632 common shares in the Company’s upcoming private placement, which is anticipated to boost the Company’s capital and facilitate further expansion. This engagement illustrates a shared vision for growth and progress moving forward.
Significance of Mutual Agreements
To foster a constructive relationship post-settlement, a Mutual Non-Disparagement Agreement was established between Florin and certain former directors and officers of the Company. This agreement emphasizes the importance of professional integrity and ensures that both parties can move forward positively without negativity lingering from past disputes.
The reassignment of the principal amount of the Notes was structured to enable lenders to hold the debt as long-term and unsecured, thus ensuring greater financial stability for the Company.
Looking Towards the Future
The conclusion of this settlement marks a pivotal chapter in St. James's narrative, allowing it to proceed with ambitions focused on the Grub Line Property development in Newfoundland, a site ripe with potential for further exploration and value creation. The Company is invigorated by the support and patience shown by its shareholders throughout this challenging phase.
About St. James Gold Corp.
St. James Gold Corp. is a dynamic player in the mining sector, committed to generating shareholder value through the acquisition and development of promising mineral deposits. The Company is listed on the TSX Venture Exchange under the trading symbol “LORD” and also appears on the OTCQB under “LRDJF” and the Frankfurt Stock Exchange under “BVU3”. St. James focuses on integrating geological datasets and financing strategic exploration efforts to maximize the potential of its projects.
For additional corporate information, St. James Gold encourages interested parties to visit its official website.
Company Contact Information
For further inquiries, feel free to reach out to St. James Gold Corp. at:
Tel: 1 (800) 278-2152
Email: info@stjamesgold.com
Frequently Asked Questions
What is the purpose of the Settlement Agreement with Florin?
The Settlement Agreement aims to resolve past obligations and clear the way for future Company developments, primarily focused on the Grub Line Property.
How much did St. James Gold pay in cash to settle with Florin?
St. James Gold agreed to a cash payment of $435,000 as part of the settlement agreement.
What was included in the shares issued to Florin?
St. James issued 2,105,264 common shares to Florin at a price of $0.095 per share to settle part of the debt.
Is there any collaborative agreement between St. James and Florin post-settlement?
Yes, a Mutual Non-Disparagement Agreement was signed to ensure positive relations moving forward.
What is the next focus for St. James Gold?
St. James Gold is focusing on the development of its Grub Line Property in Newfoundland, aiming for exploration and potential mineral deposit discovery.
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