Medaro Mining Corp. Announces Debt Settlement through Share Issuance
Vancouver, BC, February 5, 2025 – Medaro Mining Corp. (CSE: MEDA) (OTC Pink: MEDAF) (FSE: 1ZY) (“Medaro” or the “Company”), a mineral exploration company, is thrilled to update shareholders on a significant development. The Company has recently entered into a debt conversion agreement (the “Agreement”) with certain creditors (the “Creditors”) to settle a debt of $297,682 through the issuance of common shares.
Terms of the Debt Settlement
Under the terms of the Agreement, the Creditors will receive an aggregate of 3,166,826 common shares (each, a “Share”) of Medaro at a price of $0.094 per Share. This transaction, referred to as the “Shares for Debt Transaction,” will not create a new control person, nor will any insiders be participating in the settlement.
Impact on Medaro
This debt settlement comes at an opportune time for Medaro as it continues to focus on its exploration projects in British Columbia. By converting debt into equity, the Company can reduce its outstanding liabilities and strengthen its balance sheet. This, in turn, may lead to increased investor confidence and potentially improved market sentiment.
Impact on Shareholders
The Shares for Debt Transaction will result in an increase in Medaro’s issued and outstanding common shares. Shareholders should keep this in mind as they consider their holdings. It is essential to note, however, that the transaction does not create a new control person or involve insider participation.
Impact on the Mining Industry and the World
The mining industry, like many others, often faces the challenge of managing debt. Debt conversion agreements, such as the one entered into by Medaro, can be a valuable tool for companies looking to strengthen their financial position. By converting debt into equity, companies can reduce their short-term obligations and potentially improve their long-term sustainability. This transaction may serve as an example for other mining companies facing similar financial challenges.
Conclusion
Medaro Mining Corp.’s debt settlement through the issuance of common shares represents a strategic move to strengthen its financial position and reduce outstanding liabilities. Shareholders should keep the increase in issued and outstanding shares in mind. The transaction may also serve as an example for other mining companies seeking to manage their debt and improve their financial sustainability.
- Medaro Mining Corp. enters debt conversion agreement with creditors
- Debt of $297,682 settled through issuance of 3,166,826 common shares
- No new control person or insider participation
- Transaction strengthens Medaro’s balance sheet and potentially improves market sentiment
- Impact on mining industry and financial sustainability
