TORONTO, April 30, 2018 (GLOBE NEWSWIRE) – God’s Lake Resources Inc. (CSE: GLR) (“the lake of God ” or the “Society”) announced today that it has reorganized its business to explore new business opportunities.
God’s Lake owns three mineral exploration properties (the “Properties“) which are all owned by a wholly owned subsidiary (“Sub-company“): (i) the Muskasenda project comprising an unpatented mining concession in English Township in the District of Cochrane, Porcupine mining division, Ontario; (ii) the Castlewood project comprises sixteen unpatented mining claims in the region Castlewood Lake of the Thunder Bay Mining Division, Ontario; and (iii) the Shaw Township Project, consisting of two patented mineral claims, which include both mineral rights and surface rights, in the Township of Shaw, near Timmins, Ontario. God’s Lake has determined that it is not appropriate at this time to begin exploration on these properties and that shareholder value has better potential to be maximized by considering a new business.
In order to prepare to consider potential business acquisitions, God’s Lake has settled loans totaling $ 100,000 (the “”Loans“) owed to related companies (collectively, the”Creditors“) in consideration for the disposal of all of the shares of Subco, which owns the properties as described above (the”Debt settlement“). The loans were interest free, payable on demand, and had a principal amount of $ 100,000. As a result of this debt settlement, the Company reduced the recorded value of the properties and related land equipment in the audited financial statements for the twelve months ended December 31, 2017, from $ 881,545 to $ 100,000. .
Further announcements will be made on the state of the company’s search for a new business. Additionally, God’s Lake is pleased to announce that Rahim Kassam has been appointed to the Board of Directors to fill a vacant position.
Rahim Kassam has worked in the mining industry for several years, more specifically with The Sheridan Platinum Group Ltd. since 2013 as analyst, mining land manager and exploration manager.
Mr. Michael Sheridan, President, CEO and Director of God’s Lake, is also a Director and Officer of the Creditors and has a controlling interest in the Creditors. Since Mr. Sheridan is an “insider” of God’s Lake, the debt settlement is considered a “related party transaction” under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions ( “MI 61-101“) requiring the Company, in the absence of exemptions, to obtain a formal assessment and approval of the minority shareholders of the“ related party transaction. ”The Company avails itself of an exemption from the formal assessment requirements of MI 61-101 available because no securities of the Company are listed on specified markets, including the TSX, New York Stock Exchange, American Stock Exchange, NASDAQ or any exchange outside of the Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the PLUS markets operated by PLUS Markets Group plc. The Company also avails itself of the exemption from the minority shareholder approval requirements set out in MI 61 -101, as the fair market value of each of the debt settlements does not exceed 25% of the market capitalization of the Company as determined in accordance with NI 61-101 The debt settlement has been approved by the directors ind dependents of God’s Lake. This announcement is being made in conjunction with the closing of the debt settlement in order to prepare the Company for the acquisition of a new business in a timely manner.
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God’s Lake Resources Inc.
CAUTION: No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained in this document. This press release includes certain “forward-looking statements”. All statements other than statements of historical fact included in this press release, including, without limitation, the future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. The significant factors that could cause actual results to differ materially from the Company’s expectations are the risks detailed herein and from time to time in documents filed by the Company with securities regulatory authorities, including following: (i) God’s Lake has ceased trading and has no history of profit; (ii) the investment in God’s Lake Common Shares is highly speculative given the unknown nature of the God’s Lake business and its current stage of development; (iii) there can be no assurance that God’s Lake will find a profitable business or that it will be able to successfully complete the purchase of such business or on commercially acceptable terms; (iv) the directors and officers of God’s Lake will devote only a part of their time to the affairs and affairs of God’s Lake and some of them are or will be engaged in other projects or undertakings so that conflicts of interest interest may arise from time to time; and (v) there can be no assurance that an active and liquid market for God’s Lake Common Shares will develop and that an investor may find it difficult to resell its Common Shares. This list is not exhaustive of factors that may affect God’s Lake forward-looking statements. These and other factors should be carefully considered and readers should not place undue reliance on God’s Lake forward-looking statements. Although the lake of god believes that the assumptions and factors used in preparing the forward-looking information in this press release are reasonable, you should not place undue reliance on such information, which only applies as of the date of this press release, and no assurance can be given that such events will occur within the timeframe disclosed or not at all. the lake of god disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.