TSX-V: AZR
VANCOUVER, June 1, 2017
/CNW/ - AZARGA METALS CORP. ("Azarga Metals" or the
"Company") (TSX-V:AZR) reports that the Company has
reached certain settlement agreements with the minority
shareholders of the Company's 60% owned subsidiary, Azarga Metals
Limited ("Azarga BVI") to accept common shares of the Company in
settlement of amounts owing.
On acquiring Azarga BVI on May 31,
2016 (see March 1, 2016 news
release), the Company assumed the obligation to repay existing
loans of US$766,709 (the
"Loan"). The Loan bears interest at the rate of 12% per annum
payable annually on each anniversary date. Accordingly,
interest of US$92,005 has accrued on
the Loan to May 31, 2017 and is now
due. The Company has reached settlement agreements with the
lenders to accept a total of 709,751 common shares of the Company
in settlement of the interest owing on the Loan based on the
closing share price of the Company at close of trading on
May 31, 2017 and the noon day
exchange rate on that same day.
Also, on the acquisition of Azarga BVI, the Company agreed to,
among other things, pay the minority shareholders of Azarga BVI
US$80,000 by June 1, 2017 (the "Deferred Payment"). The
Company has reached settlement agreements with the minority
shareholders of Azarga BVI to accept a total of 514,283 common
shares of the Company in settlement of the Deferred Payment based
on the closing share price of the Company at close of trading on
June 1, 2017 and the noon day
exchange rate on that same day.
The issue of all shares is subject to the approval of the TSX
Venture Exchange.
The minority shareholders of Azarga BVI include Alexander Molyneux, Blake Steele and OC Management Group Limited, a
company managed by Vladimir
Pakhomov, all three of whom are now directors of the
Company. Mr. Molyneux will be issued 341,026 shares to bring his
total holding to 4,826,487 shares (10.04%), Mr. Steele will be
issued 75,824 shares to bring his total holding to 1,167,368 shares
(2.43%) and OC Management Group Ltd. will be issued 230,527 shares
to bring its total to 4,233,293 shares (8.81%).
About Azarga Metals Corp.
Azarga Metals is a mineral exploration and development company
that owns 60% of the Unkur Copper-Silver Project in the Zabaikalsky
province in eastern Russia.
AZARGA METALS CORP.
"Dusty Nicol"
Dorian L.
(Dusty) Nicol, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Azarga Metals Corp.
