Cerro Grande Mining Corporation to issue stock to former CEO as part of debt settlement


TORONTO, April 30, 2021 (GLOBE NEWSWIRE) — Cerro Grande Mining Corporation (the “Company” or “CEG”) (CSE: CEG) announces that following Mr. Houghton’s termination of his employment contract and his resignation as CEO of the Company effective March On February 31, 2021, pursuant to its agreement with the Company entered into on February 17, 2021, the Company will issue 12,984,107 common shares of the Company at a deemed price of 0.05 CA$ per share to settle all amounts due to Mr. Houghton in the aggregate amount of US$516,266.70 (approximately $649,205 based on an exchange rate of US$1.00/CA$1.2575 as of March 31, 2021 ) in connection with his former employment, which includes a retirement allowance of US$330,000, the balance of his unpaid salary, reimbursement of certain expenses and certain severance payments under Chilean law less cash advances previously made to Mr. Houghton by the Society. The Company intends to complete this share issue on or about May 4, 2021. Mr. Houghton remains Chairman of the Company on an unpaid basis and without any day-to-day responsibilities, and remains a director of the Company pursuant to his election. at the annual meeting of shareholders held on March 31, 2021.

Mr. Houghton’s participation in this share issue constitutes a “related party transaction” under Multilateral Instrument 61-101- Protection of holders of minority securities in special transactions (“MI 61-101”). The Company will rely on the exemptions set forth in sections 5.5(a) and 5.7(a) of the formal valuation and minority shareholder approval requirements of NI 61-101 in connection with the issuance of shares. Based on these elements, the Company has determined that at the time the transaction was agreed, neither the fair market value of the subject of the share issue, nor the fair market value of the consideration for the issue of shares, does not exceed 25% of the Company’s market. capitalization (as determined in accordance with the requirements of NI 61-101).

Cerro Grande Mining Corporation is an exploration and development company with properties and operations currently concentrated in Chile.

Caution regarding forward-looking information
This press release contains certain “forward-looking information” as that term is defined under applicable Canadian securities laws. All information provided herein, other than information of historical fact, about possible events, conditions or financial performance that is based on assumptions about future economic conditions or plans of action, including any forward-looking financial information concerning financial performance, financial position or cash flows presented in the form of forecasts or projections constitutes forward-looking information. Forward-looking information contained in this press release includes, but is not limited to, the expected closing of the share offering and the timing thereof. The forward-looking information contained in this press release reflects the Company’s current expectations, assumptions and/or beliefs based on information currently available to the Company. With respect to the forward-looking information contained in this press release, the Company has made assumptions regarding, among other things, the Company’s ability to complete the issuance of shares in a timely manner. The forward-looking information contained in this press release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the Company’s inability to achieve the issuance of shares in a timely manner. Any forward-looking information speaks only as of the date on which it is made and, except as required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either as a result of new information , future events or for any other reason.

For more information, contact:
Peter Hogg, CFO and Interim CEO
James MacAuliffe
E-mail: [email protected]
Telephone: +56 9 9837 4476


Comments are closed.