Angkor Resources Settles $1.92 Million Debt Through Share Issuance

Angkor Resources Corp. has announced a significant financial restructuring through shares for debt transactions totaling $1,922,800. The company will issue 8,263,333 units at a deemed price of $0.21 per unit, with each unit consisting of one common share and one-half share purchase warrant. The full warrants are exercisable to purchase common shares at $0.30 for 24 months from issuance, featuring an acceleration clause that triggers forced exercise if the company's shares trade at $0.40 or above for 10 consecutive trading days.

The debt settlement encompasses five distinct sources, including loans totaling $471,300 covering principal and interest on three facilities, a $400,000 principal payment related to the Evesham acquisition, settlement amounts due to a 30% participating partner from the Oyadao North license sale to Almighty Resources, notes payable conversions of $875,000 for the original gas capture project in Evesham, Saskatchewan, and $62,500 in compensation to management and contractors. An additional $187,500 will be settled through common share issuance to related parties including directors, officers, and management at the same $0.21 price point, though these transactions do not qualify for warrant inclusion.

Chief Financial Officer Grant T. Smith emphasized the strategic importance of this move, stating that the debt settlement significantly improves the company's balance sheet by reducing debt burden and lowering interest expenses. This financial restructuring allows Angkor to redirect resources toward core business initiatives and long-term goal achievement. The transaction required careful navigation of regulatory requirements, particularly concerning related party transactions under Multilateral Instrument 61-101.

The company utilized specific exemptions from MI 61-101's formal valuation and minority approval requirements, relying on Section 5.5(b) since Angkor is not listed on specified markets and Section 5.7(1)(a) as the transaction value involving interested parties doesn't exceed 25% of market capitalization. Final approval from the TSX Venture Exchange remains pending, with common shares subject to a standard four-month hold period following issuance. Additional corporate information is available through the company's regulatory filings at https://www.sedarplus.ca.

This debt conversion represents a strategic financial maneuver that strengthens Angkor's position in both Canadian and Cambodian markets where the company maintains mineral exploration licenses and energy projects. The transaction demonstrates management's confidence in the company's future prospects while providing immediate balance sheet improvement. The successful implementation of this shares for debt arrangement could serve as a model for other junior resource companies facing similar financial challenges in the current economic environment.