Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) announced it has entered into an agreement with creditor Whittle Consulting whereby Whittle will in lieu of receiving cash for service rendered will invest $348,000 of the amount due in exchange for 1,831,579 shares.
The company said the issue price of the shares equals $0.19 per share.
Whittle is carrying out an Enterprise Optimization Study at Spanish Mountain Gold’s open pit project in British Columbia, Canada.
Whittle is deploying its Prober F-software, computing power and team of mining industry professionals to determine the project’s optimal operation and scale, Spanish Mountain Gold said.
"We are delighted to become shareholders in Spanish Mountain Gold,” Whittle Consulting CEO Gerald Whittle commented. “We have great confidence in the management team. We look forward to helping realize the full potential of this project.”
Spanish Mountain Gold said the shares represent a partial payment for the services performed by Whittle to date. The balance will be paid in cash.
The company is focused on advancing the Spanish Mountain gold project towards the construction of the next gold mine in the Cariboo Gold Corridor in BC.