Palisades Goldcorp Closes $8.25M Loan with Strategic Investor

Palisades Goldcorp has closed an $8.25mln loan with a strategic investor, issuing a 15% interest-bearing note over 12 months. The note is secured by 7.85mln New Found Gold Corp shares and will be issued to a significant shareholder of the Company. The transaction constitutes a related party transaction under MI 61-101, but the Company has relied on exemptions to complete the deal expeditiously.

Palisades Goldcorp Ltd. (TSXV: PALI) has announced the closing of an $8.25 million loan with a strategic investor, issuing a 15% interest-bearing note over a 12-month period. The note, secured by 7.85 million New Found Gold Corp. shares, was issued to a significant shareholder of the Company. The transaction, which constitutes a related party transaction under Multilateral Instrument 61-101 (MI 61-101), was completed expeditiously by relying on exemptions to valuation and minority shareholder approval requirements [2].

The note will accrue interest at 15% per annum, with the loan period set to expire in twelve months. The Company's board of directors has unanimously approved the loan, and the transaction is expected to close within 21 days of the announcement. The Company expects that the loan will not require a material change report to be filed at least 21 days before closing.

This loan is a strategic move for Palisades, providing the Company with additional financial resources to support its operations and investments in the resource and mining sector. The Company has a strong focus on junior companies in need of financial resources to unlock their full potential and is committed to delivering meaningful returns to its shareholders.

Reference:
[1] https://finance.yahoo.com/news/palisades-proposes-20-million-return-103000778.html
[2] https://www.newswire.ca/news-releases/palisades-announces-closing-of-8-251-800-loan-with-strategic-investor-897834510.html