Toronto, Ontario--(Newsfile Corp. - June 19, 2018) - Veta Resources Inc. is pleased to announce that it has completed a debt settlement whereby it has satisfied $125,000 of trade payables through the issuance of 1,250,000 common shares of the Company ("Common Shares") and issued 750,000 Common Shares to the Chief Executive Officer of the Company in connection with past services provided.
Prior to the completion of the issuance of Common Shares, Mr. Jennings, owned 850,000 Common Shares, representing approximately 10.7% of the issued and outstanding Common Shares. Upon completion of the issuance of Common Shares, Mr. Jennings will own 1,600,000 Common Shares, representing approximately 16.1% of the Company's issued and outstanding Common Shares, on a non-diluted basis. Depending on market and other conditions, or as future circumstances may dictate, Mr. Jennings may from time to time increase or decrease his holdings of Common Shares or other securities of the Company. A copy of the early warning report will be available on the Company's issuer profile on SEDAR at www.sedar.com.
Certain insiders of the Company acquired 1,250,000 Common Shares in connection with the transaction and their participation constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 — Protection of Minority Securityholders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(b) of MI 61-101, as the Common Shares are not listed on a specified market and the fair market value of the participation by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. A material change report will be filed less than 21 days before the closing date of the debt settlement and issuance of shares for services. This shorter period is reasonable and necessary in the circumstances to allow the Company to improve its financial position by reducing its accrued liabilities in order to make it a more attractive for potential merger and acquisition transactions.
About Veta Resources Inc.
Veta Resources Inc. has optioned two exploration properties located in southern Chile. The projects are referred to as the JOY West and JOY East properties and together represent a land package of approximately 3,450 hectares, or approximately 34.5 km2. Veta also has 100% ownership in three exploration properties which are also located in Southern Chile which represent a land package of approximately 73km2 The Company has 9,957,050 shares outstanding, is a reporting issuer under certain provincial security commissions and is not currently traded on an exchange.
For more information, please contact:
Brian Jennings President, CEO and CFO Tel: (416) 616-4230 Email: firstname.lastname@example.org
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's disclosure filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
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