Blue Moon Announces Closing of Shares for Debt Transaction

Rhea-AI Summary

Blue Moon Zinc Corp. (OTC PINK:BMOOF) has completed a shares-for-debt transaction, settling $56,480 in debt owed to CEO Patrick McGrath. The Company issued 1,613,714 common shares at a price of $0.035 per share, which will be subject to a hold period until February 17, 2021. Blue Moon is advancing its polymetallic deposit containing zinc, gold, silver, and copper, with a substantial inferred resource of 7.8 million tons. The Company also holds the Yava polymetallic project in Nunavut. Investors should be aware of risks relating to forward-looking statements in the release.

Positive

• Successful closure of a shares-for-debt transaction, improving balance sheet by reducing debt by $56,480.
• Significant resource estimate of 7.8 million tons at 8.07% zinc equivalent, indicating strong potential for future growth.

Negative

• Issuance of 1,613,714 shares could dilute existing shareholder value.
• Forward-looking statements caution investors about uncertainties in market conditions and exploration outcomes.

VANCOUVER, BC / ACCESSWIRE / October 16, 2020 / Blue Moon Zinc Corp. (TSX.V:MOON), US (OTC PINK:BMOOF) (the "Company") announces it has closed its shares for debt transaction, previously announced on October 6, 2020. Pursuant to the transaction, the Company agreed to settle $56,480 of debt with Patrick McGrath, the Chief Executive Officer of the Company, through the issue of an aggregate of 1,613,714 common shares at a deemed price of $0.035 cents per share. The common shares are subject to a hold period which expires on February 17, 2021.

About Blue Moon

Blue Moon (TSX.V: MOON; OTC PINK:BMOOF) is currently advancing its Blue Moon polymetallic deposit which contains zinc, gold, silver and copper in partnership with Platina Resources Limited. The deposit is open at depth and along strike. The Blue Moon 43-101 Mineral Resource includes 7.8 million inferred tons at 8.07% zinc equivalent (4.95% zinc, 0.04 oz/t gold, 0.46% copper, 1.33 oz/t silver), containing 771 million pounds of zinc, 300,000 ounces of gold, 71 million pounds of copper, and 10 million ounces of silver. The 43-101 Mineral Resource report dated November 14, 2018 was authored by Gary Giroux, P. Eng., and Lawrence O'Connor, a QP, and entitled "Resource Estimate for the Blue Moon Massive Sulphide Occurrence". The 43-101 and related press release with details on the resource are available on the company's website and were filed on www.sedar.com on November 20, 2018. The Company also holds 100% of the Yava polymetallic project in Nunavut that is in the same volcanic lithologies and south of Glencore's Hackett River deposit. More information is available on the company's web site (www.bluemoonmining.com).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Persons

John McClintock, P. Eng, a Director of the Company, is a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this press release.

For more information please contact:

Patrick McGrath, CEO
1-832-499-6009
pmcgrath@bluemoonmining.com

Investor Contact:

Kevin Shum
Investor Relations
+1-647-725-3888 ext 702
kevin@jeminicapital.com

Resource estimates included in this news release are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions set forth in the relevant technical report and otherwise, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for zinc, the results of future exploration, uncertainties related to the ability to obtain necessary permits, licenses and titles, changes in government policies regarding mining, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

The securities referenced in this news release have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

SOURCE: Blue Moon Zinc Corp.

View source version on accesswire.com:
https://www.accesswire.com/610861/Blue-Moon-Announces-Closing-of-Shares-for-Debt-Transaction

FAQ

What is the recent shares-for-debt transaction involving Blue Moon Zinc Corp (BMOOF)?

Blue Moon Zinc Corp has settled $56,480 in debt to CEO Patrick McGrath by issuing 1,613,714 common shares at $0.035 each.

What are the key resources reported by Blue Moon Zinc Corp?

Blue Moon Zinc Corp's deposit includes 7.8 million tons at 8.07% zinc equivalent, containing significant quantities of zinc, gold, copper, and silver.

When does the hold period for the newly issued shares expire?

The hold period for the shares issued in the debt settlement expires on February 17, 2021.

What potential risks does Blue Moon Zinc Corp mention in its press release?

The Company notes risks related to market conditions, exploration results, and uncertainties regarding necessary permits and financing.