GILXF - Gitennes Announces Debt Settlements
(TheNewswire)
Vancouver , B.C. - TheNewswire - January 29, 2021 - Gitennes Exploration Inc.(" Gitennes " orthe " Company ")– (TSXV:GIT) (OTC:GILXF) announces that it hasentered into debt settlement agreements with senior officers of theCompany (the " Creditors" ) whereby, subject to receipt of approval of the TSX VentureExchange, the Company will issue an aggregate of 1,325,000 commonshares in the capital of the Company (each, a "SettlementShare"), at a deemed price of $0.10 per Settlement Share, inconsideration for the settlement of an aggregate of $132,500 inaccrued liabilities owing to the Creditors in respect of managementfees (the " DebtSettlements" ). The Company proposed theDebt Settlements to assist it with preserving its cash for workingcapital.
The Creditors are insiders of the Company, andaccordingly, the issuance of the SettlementShares in connection with the Debt Settlementsis considered a "related party transaction" pursuant toMultilateral Instrument 61-101 – Protection of Minority Security Holders inSpecial Transactions (" MI 61-101 "). The Company reliedon Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for an exemption fromthe formal valuation and minority shareholder approval requirements,respectively, of MI 61-101, as, neither the fair market value of thesubject matter of, nor the fair market value of the Settlement Sharesto be issued pursuant to the Debt Settlements exceed 25% of theCompany's market capitalization.
All securities to be issued pursuant to the DebtSettlements will be subject to a four month and one day statutory holdperiod from the date of issuance. The Debt Settlements are subjectto all necessary regulatory approvals, including from the TSX VentureExchange.
About Gitennes ExplorationInc.
Gitennes is in the business of exploring for andadvancing mineral properties with a focus on high grade or large tonnage gold deposits . The Company currently hasfour properties in Quebec: JMW, Maxwell, RAL and New Mosher, theSnowbird gold property in British Columbia and a 1.5% Net SmelterReturn royalty on the 18 million ounce Urumalqui Silver Project inPeru. JMW and Maxwell are 100% owned by Gitennes. RAL and NewMosher are under option and Gitennes can earn an initial 70% and hasthe right to increase its ownership to 85%.
For further information on the Company, readers arereferred to the Company’s website at www.gitennes.com and itsCanadian regulatory filings on SEDAR at www.sedar.com .
Gitennes Exploration Inc.
"Ken Booth"
Ken Booth
President
For further information, please contact: KenBooth
Phone: 604-682-7970
Email: info@gitennes.com
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this news release.
Cautionary Note RegardingForward-Looking Information
This news release includes certain forward-lookingstatements and forward-looking information (collectively,"forward-looking statements") within the meaning ofapplicable Canadian securities legislation. All statements, otherthan statements of historical fact, included herein including, withoutlimitation, the issuance of the Settlement Shares in connection withthe Debt Settlements, the anticipated business plans and timing offuture activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable,it can give no assurance that such expectations will prove to becorrect. Often, but not always, forward looking information can beidentified by words such as "pro forma", "plans","expects", "will", "may","should", "budget", "scheduled","estimates", "forecasts","intends", "anticipates", "believes","potential" or variations of such words including negativevariations thereof, and phrases that refer to certain actions, eventsor results that may, could, would, might or will occur or be taken orachieved. Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance or achievements of the Company to differmaterially from any future results, performance or achievementsexpressed or implied by the forward-looking statements. Such risksand other factors include, among others, statements as to theanticipated business plans and timing of future activities of theCompany, including the ability of the Company to obtain sufficientfinancing to fund its business activities and plans, delays inobtaining governmental and regulatory approvals (including of the TSXVenture Exchange for the Debt Settlements), permits or financing,changes in laws, regulations and policies affecting mining operations,risks relating to epidemics or pandemics such as COVID–19, includingthe impact of COVID–19 on the Company's business, financialcondition and results of operations, the Company's limited operatinghistory, currency fluctuations, title disputes or claims,environmental issues and liabilities and other risks and uncertaintiesdisclosed in the Company's latest Management's Discussion and Analysisand filed with certain securities commissions in Canada, copies ofwhich can be found under the Company's profile on the SEDAR website atwww.sedar.com.
Readers are cautioned not to place undue reliance onforward-looking statements. The forward-looking statements containedin this news release are made as of the date of this news release and,except as otherwise required by law, the Company undertakes noobligation to update the forward-looking statements contained herein,or to update the reasons why actual results could differ from thoseprojected in these forward-looking statements.
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