Mr. Martin Cooper reports
PELE MOUNTAIN ANNOUNCES TERMINATION OF LOI WITH ENIRGI GROUP AND APPOINTMENT OF NEW INTERIM CEO/PRESIDENT
Pele Mountain Resources Inc. has received written notification from Enirgi Group Corp. that, after a strategic review of Enirgi's business plan by its newly appointed board of directors, Enirgi has elected to terminate its non-binding letter of intent with Pele previously announced on June 1, 2017, and updated on July 5, 2017.
In conjunction with Enirgi's termination of the LOI, Pele also received a written resignation from Rob Scargill, formerly with Enirgi, as Pele's interim chief executive officer and president. The termination notice for Enirgi and resignation of Mr. Scargill were effective immediately.
The board of directors of Pele is pleased to announce that Martin Cooper, one of the founding directors of Pele since 1996 and currently its vice-president, indigenous relations, and treasurer, has agreed to expand his continuing role with Pele and accept the position of interim chief executive officer and president, effective immediately.
As previously announced, Pele has engaged with all of its significant creditors regarding its capital restructuring and a potential equity-for-debt conversion and, to date, has entered into commitments with various creditors to convert approximately $1.15-million of its indebtedness into common shares of Pele. In addition, Pele has also arranged for approximately $125,000 of indebtedness to be forgiven by certain of its creditors, approximately $94,000 of which can be attributed to insiders, which, when taken into account with the shares-for-debt transactions, upon implementation will significantly improve Pele's balance sheet. The final terms for any debt conversion will be subject to TSX Venture Exchange approval and further information will be provided about the completion of the shares-for-debt transactions and the proposed debt forgiveness in a future news release.
Pele's board of directors and its newly appointed interim chief executive officer and president, Mr. Cooper, are actively engaged in unwinding its affairs and arrangements with Enirgi under the LOI, seeking the implementation and completion of the proposed shares-for-debt transactions and debt forgiveness discussed above, while simultaneously seeking out strategic alternatives for Pele to enhance shareholder value.
About Pele Mountain Resources Inc.
Pele shares are listed on the TSX-V under the symbol GEM. Trading in Pele's shares has been halted by the TSX-V since on or about June 2, 2017.
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