1844 Resources Inc. (TSXV: EFF, OTC:EFRSF) has announced significant updates regarding its strategy to settle debts through the issuance of shares. The company has modified its earlier agreements related to share-for-debt arrangements, initially reported on April 2, 2025. These adjustments involve several creditors, including two firms owned by 1844’s directors, collectively referred to as the creditors.
The revised agreements aim to address an outstanding debt totaling $413,067, which arises from services rendered to 1844.
In exchange for this debt, the company plans to issue 3,596,936 common shares, valuing each share at a deemed price of $0.05 as part of this debt settlement.
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Additional debt settlement agreements
In addition to the aforementioned debt resolution, the company has entered into another agreement to address an additional debt of $195,556. This debt is owed to an arm’s length creditor and will be settled through the issuance of 1,758,687 common shares at a deemed price of $0.11 per share. These actions are part of 1844 Resources’ broader efforts to streamline its financial obligations.
Regulatory and statutory considerations
It is important to note that all shares issued as part of these debt settlements will be subject to a statutory hold period of four months and one day from the issuance date, in compliance with relevant securities regulations. The completion of these debt settlements is contingent upon meeting several conditions, including obtaining necessary approvals from corporate governance and regulatory bodies, notably the TSX Venture Exchange.
Company background and future outlook
1844 Resources Inc. is an exploration-focused entity, concentrating on the discovery of strategic and energetic minerals in largely uncharted territories, particularly in the Gaspé region of Québec. The company is committed to enhancing shareholder value through the identification of new mineral deposits, supported by a dedicated management team.
As the company progresses with its debt settlement strategies, it remains focused on its core objectives and future growth. Management envisions that these debt resolutions will not only stabilize the company financially but also pave the way for further exploration initiatives.
Forward-looking statements
This announcement includes forward-looking statements, which represent the company’s beliefs, expectations, or anticipations about future events or developments. These statements encompass various aspects, including strategic planning, operational performance, and financial forecasts. It is essential for stakeholders to understand that these statements are subject to uncertainties and risks that may influence actual outcomes.
Furthermore, it is imperative to clarify that neither the TSX Venture Exchange nor its regulatory service provider takes responsibility for the accuracy or adequacy of this announcement. The information provided seeks to inform stakeholders about the current developments related to 1844 Resources and its ongoing efforts to optimize its financial standing.
Contact information
For any inquiries regarding this announcement, please reach out to:
The revised agreements aim to address an outstanding debt totaling $413,067, which arises from services rendered to 1844. In exchange for this debt, the company plans to issue 3,596,936 common shares, valuing each share at a deemed price of $0.05 as part of this debt settlement.2
