Angkor Resources Settles $1.9 Million Debt Through Share Issuance

Angkor Resources Corp. has announced a comprehensive shares-for-debt transaction totaling $1,922,800, representing a strategic move to strengthen the company's financial position. The transaction involves issuing 8,263,333 units at $0.21 per unit, with each unit consisting of one common share and one-half share purchase warrant. The full warrants are exercisable at $0.30 per share for 24 months and include an acceleration clause that triggers if the company's shares trade at $0.40 or above for 10 consecutive trading days.

The debt settlement encompasses five distinct sources, including $471,300 in loans covering principal and interest on three facilities, a $400,000 principal payment related to the Evesham acquisition, and $875,000 in notes payable from the original gas capture project in Evesham, Saskatchewan in 2022. Additionally, the company will settle $187,500 owed to directors, officers, and insiders through common share issuance at the same $0.21 price, though these transactions do not qualify for warrant inclusion under related party regulations.

Grant T. Smith, CFO for Angkor, emphasized the transaction's significance, stating it "significantly improves our balance sheet by reducing our debt burden and lowers our interest expense." The unanimous board approval reflects management's confidence in the company's future direction and commitment to shareholder value enhancement. The transaction qualifies as a related party transaction under Multilateral Instrument 61-101 but proceeds under specific exemptions since the company is not listed on specified markets and the transaction value doesn't exceed 25% of market capitalization.

The debt settlement carries important implications for Angkor's operational flexibility and strategic focus. By converting debt to equity, the company reduces immediate financial pressures and interest obligations, allowing greater resource allocation toward core business initiatives. This move comes as Angkor maintains its dual focus on mineral exploration in Cambodia through subsidiary Angkor Gold Corp., which holds three exploration licenses, and energy projects in Canada through EnerCam Exploration Ltd., involved in gas capture and oil production in Saskatchewan.

Investors should note that the transaction remains subject to TSX Venture Exchange approval, with shares subject to a standard four-month hold period. The company's forward-looking statements caution that while management believes the assumptions reasonable, actual results may vary due to risks detailed in securities filings available at https://www.sedarplus.ca. This financial restructuring positions Angkor to advance its environmental and social projects while pursuing cleaner energy solutions across its operational jurisdictions.