Newlox Gold Announces Issuance of Convertible Debentures and Amendment of Convertible Debentures and Warrants

Core Viewpoint - Newlox Gold Ventures Corp. is planning a non-brokered private placement to raise up to $1,023,000 through the issuance of convertible debentures and warrants, while also amending existing debentures and warrants from a previous placement [1][2][9][10]. Group 1: Private Placement Details - The private placement will consist of up to 1,000 units priced at $1,023 each, totaling gross proceeds of up to $1,023,000 [1]. - Each unit will include a two-year 5% unsecured convertible debenture and 9,300 common share purchase warrants [1]. - The new debentures will have a principal amount of $1,000, a 5% annual interest rate, and will be convertible into common shares at a price of $0.11 per share [3]. - Each new warrant will allow the holder to acquire one common share at a price of $0.15 for two years from the date of issue [4]. Group 2: Related Party Transaction - Mr. MacKay, an insider of the Corporation, plans to participate in the private placement with an investment of $41,400 [6]. - This participation is classified as a "related party transaction" under Multilateral Instrument 61-101, but is expected to be exempt from formal valuation and minority shareholder approval requirements [7]. Group 3: Use of Proceeds - The net proceeds from the private placement will be utilized for general corporate purposes [8]. Group 4: Amendments to Prior Debentures and Warrants - The Corporation will amend the terms of $403,500 in prior convertible debentures, extending their maturity by 24 months and reducing the interest rate from 10% to 5% [2][9]. - The conversion price of the prior debentures will be reduced from $0.15 to $0.11 [9]. - The Corporation also intends to extend the expiry date and reduce the exercise price of the prior warrants from $0.25 to $0.15, extending the exercise period by two years [10]. Group 5: Company Overview - Newlox Gold Ventures Corp. is focused on recovering gold and silver from artisanal and small-scale mining operations in Latin America, utilizing technology to recover precious metals while addressing historical mine waste and supporting local economic development [12].