VANCOUVER, Jan. 20, 2016 /CNW/ - Quartz Mountain
Resources Ltd. ("Quartz Mountain" or the "Company") (TSX-V: QZM;
OTCBB: QZMRF) announces that it has reached agreements with
Bearclaw Capital Corp. ("Bearclaw"), the holder of its convertible
debenture, and Hunter Dickinson Services Inc. ("HDSI") to which it
owes payment for services.
Bearclaw will forgive a convertible debenture with current
amount owing of $500,000 plus
interest of $1,438 (the "Debenture
Settlement") if Quartz Mountain completes the following:
- makes a cash payment of $29,793
to Bearclaw;
- issues 2 million shares to Bearclaw; and
- transfers the Gnat Property (three claims, totalling 1,294.3
hectares), which was acquired from Bearclaw in exchange for the
convertible debenture back to Bearclaw at no cost. The Gnat
Property remains in good standing until August 2016.
HDSI has agreed to forgive debt in the net amount currently
owing of $3,086,089 ("Debt
Settlement") if Quartz Mountain completes the following:
- makes a cash payment of $180,207
to HDSI; and
- issues 6 million shares to HDSI.
Any shares issued in connection with the Debenture Settlement
and the Debt Settlement will be issued in reliance of certain
prospectus and registration exemptions under applicable securities
legislation and are subject to a four month hold period.
Any HDSI principal that is also a member of the Quartz Mountain
Board of Directors has abstained from voting on the Debt
Settlement. The Debenture Settlement and Debt Settlement are
subject to regulatory approval, including acceptance by the TSX
Venture Exchange.
Subsequent to completion of the Debenture Settlement and Debt
Settlement, Quartz Mountain intends to complete a 10:1
consolidation of its common shares and, thereafter, to pursue a new
transaction or acquire a new asset.
On behalf of the Board of Directors
Ronald W. Thiessen
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.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, such as those that address the
in-progress debenture settlement and debt settlements are
forward-looking statements. These statements include expectations
about the likelihood of completing the debenture settlement and
debt settlement and the ability of the Company to secure regulatory
acceptance for its debenture settlement and debt settlement. Though
the Company believes the expectations expressed in its
forward-looking statements are based on reasonable assumptions,
such statements are subject to future events and third party
discretion such as regulatory personnel. For more information on
the Company, and the risks and uncertainties connected with its
business, Investors should review the Company's home jurisdiction
filings at www.sedar.com and its filings with the United States
Securities and Exchange Commission.
SOURCE Quartz Mountain Resources Ltd.
