Sego to issue 7.85M shares for debt; grants options

Jun 21, 2016

SEGO RESOURCES INC. – SHARES FOR DEBT AND STOCK OPTIONS

Sego Resources Inc. is proposing to issue shares for debt to certain non-arm’s-length individuals and has granted stock options.

Shares for debt

Sego proposes to issue 7,857,500 common shares at a price of five cents per share to settle debts totalling $392,875. Management of Sego is owed the following amounts:

J. Paul Stevenson is owed from November, 2013, to May 31, 2016, management fees of $3,000 per month totalling $93,000, plus geological consulting fees until March, 2014, totalling $53,728.62, expenses incurred (rent, telephones and insurance) of $107,633.22, government sales tax of $12,632.89 and cash loans of $44,127.15 (interest free) for a total of $311,121.88, of which $275,000 will be satisfied by shares for debt.
J. Allan Hilton is owed from July, 2014, to May 31, 2016, geological consulting fees of $51,600, expenses of $6,357.23 and cash loans (interest free) of $37,500 for a total of $95,457.23, of which $95,450 will be satisfied by shares for debt.
Carta Exploration Ltd. (Dr. Selina Tribe, PhD, PGeo) is owed geological consulting fees of $6,825, the total of which will be satisfied by shares for debt.
MBP Management Ltd. (Brent Petterson, CPA) is owed accounting fees of $15,600, the total of which will be satisfied by shares for debt.

Management believes that the proposed share for debt is necessary to strengthen the company’s balance sheet and thereby increase the attractiveness of the company for future private placement financings.

The proposed shares-for-debt filing is subject to regulatory approval. The shares issued would have a hold period of four months.

Stock options

Pursuant to the company’s stock option plan, the company has granted 3,998,575 stock options to directors, officers, employees and consultants, exercisable at a price of 10 cents for a period of five years. The issuance of stock options is subject to regulatory approval.

http://www.segoresources.com/newsnew.html