Canada's Lode Gold Settles with Business Partner, Each Investing CAD 200,000

en.Wedoany.com Reported - Canadian mining company Lode Gold Resources Inc. announced that a contract dispute with a former business partner has been resolved. The dispute involved the company and its former subsidiary, 1475039 B.C. Ltd., now known as Gold Orogen Exploration Corp., a wholly owned subsidiary of Gold Orogen Resources Corp. Under the settlement agreement, the business partner has formally withdrawn its previously filed notice of claim, and the parties have provided customary mutual releases regarding the relevant matters.

As part of the settlement terms, Lode Gold and its former business partner will each invest CAD 200,000 in Gold Orogen to support the company's exploration program. This investment is subject to approval from the TSX Venture Exchange and the Canadian Securities Exchange. The settlement contains no other terms that materially impact Lode Gold.

Meanwhile, Lode Gold also expects to enter into a debt-to-equity arrangement with Gold Orogen, settling certain amounts owed to the company by Gold Orogen through the issuance of Gold Orogen shares. This arrangement is also subject to regulatory acceptance and approval.

If the settlement and the anticipated debt-to-equity transaction are completed prior to any additional financing by Gold Orogen, Lode Gold and the former business partner will become major shareholders together, collectively holding up to a 19.9% interest in Gold Orogen. Any subsequent financing by Gold Orogen will dilute Lode Gold's shareholding.