South Pacific Metals Corp. Announces Share for Debt Transaction

South Pacific Metals Corp. (TSX-V:SPMC)(FSE:6J00), based in Vancouver, BC, disclosed its intention to complete a shares for debt transaction. This aims to address its outstanding debt of C$1,270,000 in principal and C$79,726.63 in accrued interest owed to holders of its 10% secured convertible debentures, known as the 2023 Debentures. The total debt, amounting to C$1,349,726.63, will be settled through the issuance of 6,748,633 common shares at C$0.20 each.

Initially, SPMC considered issuing new convertible debentures to replace the 2023 Debentures but has now opted for a shares for debt arrangement. This shift is anticipated to fortify the company’s balance sheet by eliminating the debt linked to the 2023 Debentures. The transaction is subject to a four-month hold period as per Canadian securities law and still requires approval from the TSX Venture Exchange.

Insider participants include Snowfields Wealth Management Limited, connected to director Geoffrey Lawrence, and director Dain Currie. Their involvement is classified as a "related party transaction," but exemptions from certain requirements have been applied due to the transaction's scale relative to the company’s market cap.