Giyani Gold, the Southern African-focused gold explorer, has announced that it will issue shares to settle its debts.
The company will issue about 5.8 million shares at $0.08 per share to settle $466 255.60 of debt relating to consulting fees and service fees, while an additional 4.6 million shares will be issued to settle $367 143.12 of outstanding debt owed, directly or indirectly, to certain directors and senior officers of Giyani Gold.
This is in addition to the non-brokered private placement of 4 million shares at a price of $0.05 per share, undertaken by the company in April, in which the company raised a total of $200 000.
The debt settlement is subject to approval by the TSX Venture Exchange and will be subject to a hold period of four months and one day from their date of issuance.
Giyani’s exploration permits, which comprise the Giyani gold project in South Africa, remain in good standing and it is management’s belief that a sizable gold deposit may exist near historic mining sites contained in these permits.
However, given current market conditions, at this time Giyani’s corporate activities are focused on completing a transaction to acquire a more advanced cash flow generating project to enhance shareholder value.