Mr. Timothy Beale reports
REVELO OBTAINS APPROVAL FOR MANAGEMENT DEBT SETTLEMENT AND PROVIDES UPDATED SHARE STRUCTURE
As outlined and described in its news releases dated Feb. 6, April 21 and April 27, 2020, Revelo Resources Corp. has continued with its restructuring and has obtained TSX Venture Exchange approval for the settlement of certain management debt, with remaining management debt being written off to a total of $3.8-million, as follows:
- The chairman of the company has written off $513,000 in accrued fees owed to companies controlled by him.
- The chairman has converted $2.36-million in cash loans to the company into shares.
- The chief executive officer has converted $373,000 in fees accrued over 30 months into shares.
- Directors and other consultants have converted $550,000 in accrued fees and cash loans into shares.
Additionally, the company reports that the company's 1:10 share consolidation outlined in its news releases dated Feb. 6, 2020, and April 27, 2020, was effective as of April 29, 2020. The securities described in this news release are stated on a postconsolidation basis.
The cumulative debt, after write-offs, of $3.28-million has been converted at 15 cents (postconsolidation) per share, resulting in 21,886,581 shares being issued. Such shares will be subject to a resale period under Canadian securities law (and, for insiders, under TSX-V policy) until Sept. 7, 2020.
As a result of the share consolidation and the conversion of management debt into shares, the total issued and outstanding share capital of Revelo is now 38,627,083 shares.
To further the company's refinancing: the chairman has waived all fees since January, 2019; the chief executive officer has reduced his fees by 50 per cent, effective December, 2019; all compensation to the board has been waived since January, 2019; the exploration manager in Chile has agreed to a reduction of pay by 50 per cent, effective since May, 2019; and further cost reductions continue to be made to overheads in Canada and Chile.
Following these share issuances, and following other recent actions outlined in company news releases during 2020, the company is pleased to report that it is now debt-free. The company is now focused on raising capital in order to self-finance the exploration of its highly prospective gold portfolio, while it continues to pursue options for the leveraged exploration of its copper portfolio. More news relating to these objectives will be advised in due course.
About Revelo Resources Corp.
Revelo has interests in an outstanding portfolio of projects prospective for gold and copper located along proven mineral belts in one of the world's top mining jurisdictions -- Chile.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.