Champion Bear enters into agreement to defer the debt owing to its chairman and president
Mr. Richard Kantor reportsChampion Bear Resources Ltd. has entered into an agreement with Richard Kantor, the company's chairman and president, and Tomahawk Oil and Gas Ltd., a company controlled by Mr. Kantor, with respect to all of the indebtedness owing by the company to him and Tomahawk.
The purpose of the agreement is to provide the company and its shareholders with assurance that neither Mr. Kantor nor Tomahawk will demand payment of the debts until the market value of the company significantly increases from current levels.
Pursuant to the agreement, an aggregate of $215,242.08 owing to Mr. Kantor and an aggregate of $1,213,078 owing to Tomahawk will be deferred until such time as the 30-day volume-weighted average trading price of the company's common shares is at least $2 per share. At such time, this debt will be repaid at the discretion of the independent members of the board and subject to the company's then ability to pay it without unduly impairing the liquidity or solvency for the next year of operations. Upon the conditions for repayment arising, Mr. Kantor and Tomahawk may request that the company exchange common shares of the company for some portion of or all of these debts. The company is not be obliged to pursue a share-for-debt settlement, but may, in the sole discretion of the independent members of the board, agree to a share-for-debt settlement. Any future share-for-debt settlement will be subject to the prior approval of the TSX Venture Exchange and the related party rules under Multilateral Instrument 61-101 -- Protection of Minority Security holders in Special Transactions at the time.
About Champion Bear Resources Ltd.
Champion Bear is a mineral exploration company focused exclusively on the historically prospective regions of Ontario. The company's primary targets are platinum group metals, precious metals and polymetallic base metals deposits. Champion Bear's aim is to create shareholder value through selective property acquisition followed by focused exploration emphasizing drilling. The company has assembled a large land position in the Dryden and Sudbury areas, totalling over 16,000 hectares.
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