International Montoro Resources Inc. (TSX-V: IMT) (the "Company" or "International Montoro”) today announces that its board of directors (the “Board”) have approved the entering into a Shares for Debt transaction with Belmont Resources Inc. (TSX.V: BEA) – a related party.
The Company has been engaged in the acquisition, exploration and development of mineral properties in British Columbia, Saskatchewan, Ontario and Labrador. The Company has a history of working together with Belmont Resources Inc. (“Belmont”) and has previously entered into joint venture and property purchase and option agreements with Belmont for properties located in the Red Lake Mining Division of Ontario, the Central Mineral Belt in Labrador, as well as the Northern Mining District –Uranium City –Saskatchewan.
During the periods 2007 – 2013, the Company and Belmont embarked on a $1.97 million acquisition, exploration and diamond drilling program on the Crackingstone and Orbit Lake properties (comprising 12,091 ha) near Uranium City, Saskatchewan. The properties are now owned 50/50 with Belmont. During this period, Belmont was the operator and invoiced 50% of the costs to the Company, adding a customary 5% administrative fee. Due to recent economic conditions and deterioration in the investment climate for resource companies, the Company fell short of financing for shared office and exploration expenditures, hence the outstanding liability to Belmont. The Crackingstone and Orbit Lake property agreements did not contain a dilution clause, as it was the intent for the companies to continue to develop the properties together. The Company and Belmont would like to continue on a 50/50 ownership basis, and settle a portion of the Debt through share issuance.
As the transaction is non-arm’s length, the Company is required to obtain disinterested shareholder and regulatory approval to the transaction. Independent directors are recommending that shareholders approve an ordinary resolution approving the Company’s issuance of 1,700,000 common shares (the “Shares”) at a deemed price of $0.05 per share to Belmont. Gary Musil and Roger Agyagos, directors and/or officers of the Company, are also directors of Belmont. The Shares are being issued to satisfy $84,984.36 of debt (the “Debt”). The Company is not indebted to any other creditors who wish to settle shares for debt.
Belmont currently holds 84,566 common shares of the Company. The shares for debt transaction will result in Belmont owning 1,784,566 common shares, representing 3.15% of the Company’s issued and outstanding share capital.
If you have any questions, please feel free to contact the Company at (604) 683-6648.
On behalf of the Board of Directors of
INTERNATIONAL MONTORO RESOURCES INC.
President & CEO
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