Indigo Exploration receives $170,000 loan
Indigo Exploration receives $170,000 loan
2024-10-25 18:23 ET - News Release
Mr. Paul Cowley reports
INDIGO ENTERS INTO LOAN AGREEMENTS
Indigo Exploration Inc. has entered into loan agreements with certain lenders pursuant to which an aggregate of $170,000 has been made available to the company.
The company intends to use the proceeds from the loan for exploration work on its Hot property and for general working capital purposes.
The loan agreements provide that any outstanding balance of the principal amount of each loan and the interest owing pursuant to such loan is due and payable to the lenders 12 months from the date of their respective agreement. Interest is payable on the outstanding balance of the principal amount of the loan at the rate of 10 per cent per annum.
In addition, the company has agreed to issue an aggregate of 680,000 bonus shares to the lenders at a deemed price of five cents per share. The loan transactions and the issuance of the bonus shares are subject to the acceptance of the TSX Venture Exchange.
Two of the lenders are directors of the company and are loaning $10,000 each.
The participation of each insider constitutes a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The company will be relying on exemptions from the formal valuation requirements of Section 5.4 of MI 61-101 and minority shareholder approval requirements of Section 5.6 of MI 61-101. As the fair market value of the related party's participation is not more than 25 per cent of the company's market capitalization, the related party transactions are exempt from the formal valuation requirements pursuant to Subsection 5.5(a) of MI 61-101 and from the minority approval requirements pursuant to Subsection 5.7(1)(a) of MI 61-101.
We seek Safe Harbor.