South Pacific Metals Corp. Successfully Completes Shares for Debt Transaction

South Pacific Metals Corp. (SPMC), a mining company, announced the completion of a strategic shares for debt transaction aimed at settling outstanding debts amounting to C$1,349,726.63. This move involves the issuance of 6,748,631 common shares at C$0.20 per share to clear the principal and accrued interest owed under the 2023 Debentures. SPMC suggests that this transaction will significantly enhance the company's balance sheet by eradicating the cited debt.

The transaction obtained final consent from the TSX Venture Exchange and the issued securities are subject to a four-month hold period as per Canadian law. Insiders from SPMC, including Snowfields Wealth Management Limited and directors Geoffrey Lawrence and Dain Currie, participated in this transaction, thereby classifying it as a related party transaction under certain regulations. However, it was noted that the transaction does not necessitate formal valuation or minority shareholder approval due to the fair market value of insider participation not exceeding 25% of the company's market capitalization.