(TheNewswire)
Toronto, Ontario – TheNewswire - February 21, 2024 – Tantalex Lithium Resources Corp. (CSE: TTX – FSE: DW8 – OTCQB:TTLXF) ( “ Tantalex ” or the “ Corporation ” ) intends to settleoutstanding debts with various creditors at arm’s length.
The Corporation will settle its outstanding debt with InternationalCobalt Corp. in the amount of CDN$5,324,275.30 by issuing an aggregateof 106,485,506 common shares in the capital of the Corporation (the“ Common Shares ”) at aprice of CDN$0.05 per Common Share as well by issuing 50,000,000common shares purchase warrants (the “ Warrants ”), exercisable into 50,000,000 Common Shares at aprice of $0.10 for a period of thirty (30) months from issuance. Thisdebt stems from multiple unsecured convertible debentures of principalamounts of USD$2,100,000 and CDN$800,000 entered into between theparties in 2018 and in 2020 bearing an interest rate of 4% and wereoriginally convertible at a price of $0.05 per Common Share thatbecame due in November of 2022.
The proposed issuance will result in a new insider of the Corporation.The Debt Settlement Transaction would preclude the creditor, togetherwith any other voting or equity securities beneficially owned by thecreditor, its associates and affiliates, directly or indirectly, fromowning, or having control or direction over, 20% or more of the issuedand outstanding voting securities of the Corporation on a non-dilutedbasis.
Moreover, the Corporation intends to settle its outstanding debt of aprincipal amount of CDN$81,021, upsized by 10% as an incentive toconvert the debt into securities for a total of CDN$89,123.10 fordigital marketing & targeting services rendered by a specializedcompany by issuing 1,782,462 Common Shares at a price of $0.05 perCommon Share. This proposed issuance will not result in a new insiderof the Corporation. The principal amount
Also, the Corporation intends to settle its outstanding debt ofCDN$113,000 for consulting services rendered by a capital marketsconsultant by issuing 2,260,000 Common Shares at a price of $0.05 perCommon Share. This proposed issuance will not result in a new insiderof the Corporation.
The Board of Directors has determined it is in the best interests ofthe Corporation to settle the outstanding debt by the issuance ofCommon Shares and Warrants in order to preserve the Corporation’scash for general working capital purposes.
Closing of the debt settlement transactions is subject to customaryclosing conditions and the Corporation intends to close as soon aspracticable. Upon closing, the Corporation will make all necessaryfilings, including the filing of early warning reports as required.The Common Shares and Common Shares underlying the Warrants to beissued pursuant to debt settlement transactions will be subject to ahold period of four (4) months and one (1) day from the date ofissuance.
About Tantalex Lithium Resources Corporation
Tantalex Lithium is an exploration and development stage miningcompany engaged in the acquisition, exploration, development anddistribution of lithium, tin, tantalum and other high-tech mineralproperties in Africa.
It is currently focused on operating its TiTan tin and tantalumconcentrate plant and developing its lithium assets in the prolificManono area in the Democratic Republic of Congo; The Manono LithiumTailings Project and the Pegmatite Corridor Exploration Program.
Cautionary Note Regarding Forward Looking Statements
This presentation includes certain statements that may be deemed forward looking statements. All statements in this document, other than statements of historical facts, which address future production, reserve potential, exploration activities and events or developments that the Corporation expects, are forward looking statements. Such forward-looking statements include, without limitation: (i) estimates of future lithium, tin and tantalum prices, supply, demand and/or production; (ii) estimates of future cash costs and revenues; (iii) estimates of future capital expenditures; (iv) estimates regarding timing of future development, construction, production orclosure activities; (v) statements regarding future explorationresults; (vi) statements regarding cost structure, project economics,or competitive position, and; (vii) statements comparing theCorporation’s properties to other mines, projects or metals.Although the Corporation believes the expectations expressed in suchforward-looking statements are based on reasonable assumptions, suchstatements are not guarantees of future performance and actual resultsor developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statementsinclude market prices, exploitation and exploration successes,continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, that the Corporation expressly disclaims any responsibility for revising or expanding the forward- looking statements to reflect actual results or developments, and that actual results or developments may differ materially from those projected, in the forward-looking statements, except as required bylaw.
For more information, please contact: Eric Allard
President & CEO Email: ea@tantalex.ca
Website: www.tantalexlithium.com Tel: 1-581-996-3007
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