Tickers: XTSX:GYA, PINX:GYNAF, FRAA:1ZT
August 26, 2020 – Vancouver, Canada - Guyana Goldstrike Inc. (the “Company” or “Guyana Goldstrike”) (TSXV: GYA, OTC: GYNAF, FSE: 1ZT) announces the following update regarding the filing of its audited annual financial statements, the accompanying management discussion and analysis and the related CEO and CFO certifications for the fiscal year ended April 30, 2020 (collectively, the “Annual Filings”).
Due to the novel coronavirus (COVID-19) pandemic, the Company has determined to follow the British Columbia Securities Commission Blanket Order 51-517 - Temporary Exemption from Certain Corporate Finance Requirements with Deadlines during the Period from June 2 to August 31, 2020 (the “Blanket Order”) which provides the Company with an additional 45-day period to complete the Annual Filings. The Company will be filing the Annual Filings after August 28, 2020, the required deadline under National Instrument 51-102 - Continuous Disclosure Obligations (“NI 51-102”). The Company will issue a news release on the updated status of the Annual Filings as soon as further information becomes available and anticipates completing the Annual Filings by the extension date.
As required by the Blanket Order, the Company’s management and other insiders are subject to a trading blackout reflecting the principles contained in section 9 of National Policy 11-207 - Failure-to-file Cease Trade Orders and Revocations in Multiple Jurisdictions until the Annual Filings have been completed. The Company confirms that, since the filing of its interim financial statements for the nine-month period ended January 31, 2020, there have been no material business developments other than those disclosed in its news releases, including this news release.
Convertible Debenture Amendment
The Company previously issued to an arms-length lender (the “Lender”) a secured convertible debenture (the “Debenture”) in the principal amount of $300,000. The Debenture bears interest (the “Interest”) at a rate of fifteen percent per annum, payable on a quarterly basis, matures on February 19, 2022 (the “Maturity Date”), and is convertible into common shares of the Company at a price of $0.20 per share (the “Conversion Price”) at the option of the Lender.
As further consideration for the advance of funds by the Lender, in connection with the entering into of the Debenture, the Company also issued 1,500,000 detachable common share purchase warrants (collectively, the “Warrants”) to the Lender. Each Warrant is exercisable to acquire a common share of the Company at a price of $0.30 (the “Exercise Price”) until February 19, 2022.
The Debenture is presently in default, and the Creditor has agreed to extend the deadline for completion of pending Interest due and owing pursuant to the Debenture and to accelerate the Maturity Date to September 1, 2021.
In consideration for the extension and acceleration, the Company has agreed to reduce the Conversion Price of the Debenture to $0.075 and the Exercise Price of the Warrants to $0.10. Reductions in the Conversion Price and the Exercise Price remain subject to the approval of the TSX Venture Exchange and will not take effect until such approval has been received.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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