Gratomic Inc. plans to settle an aggregate of up to $1,422,149.60 in debt owed to various creditors.
The company owns one of the oldest vein graphite mines, the Aukam Graphite Project, which is close to the port city of Luderitz.
This amount includes up to $1,004,800 owed to arm’s-length creditors for cash advances, $102,500 of debt owed for management and director fees to the four directors.
There is also $314,849.60 in cash advances and payment of expenses on behalf of the CEO Arno Brand, as well as management fees, in consideration for the issuance of up to 14,221,496 common shares for $0.10 per common share.
The Debt Settlement is subject to TSX Venture Exchange approval.
All securities issued under the Debt Settlement will be subject to a statutory four-monotone-day one-hold period.
The settlement of the insider debts aggregating $417,349.60 to be settled for the issuance of 4,173,496 common shares is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101.
In accordance with the provisions of MI 61-101, the settlement of the insider debts will not close until at least 21 days after filing a material change report.
Gratomic Inc. announced on Thursday that it had reduced monthly expenses in Namibia, Canada, and Brazil by N$2,1 million (US$115,000).
The company also said it was selling certain non-core assets, including a house the company owns in Windhoek.
The proceeds will be used to obtain working capital and complete a technical report on the Aukam Property.
