January 20, 2016 Quartz Mountain Announces Cash Payments and Share Issuances to Settle Debt
January 20, 2016, Vancouver, BC -- Quartz Mountain Resources Ltd. ("Quartz Mountain" or the "Company") (TSX-V: QZM; OTCBB: QZMRF) announces that it has reached agreements with Bearclaw Capital Corp. ("Bearclaw"), the holder of its convertible debenture, and Hunter Dickinson Services Inc. ("HDSI") to which it owes payment for services.
Bearclaw will forgive a convertible debenture with current amount owing of $500,000 plus interest of $1,438 (the "Debenture Settlement") if Quartz Mountain completes the following:
makes a cash payment of $29,793 to Bearclaw;
issues 2 million shares to Bearclaw; and
transfers the Gnat Property (three claims, totalling 1,294.3 hectares), which was acquired from Bearclaw in exchange for the convertible debenture back to Bearclaw at no cost. The Gnat Property remains in good standing until August 2016.
HDSI has agreed to forgive debt in the net amount currently owing of $3,086,089 ("Debt Settlement") if Quartz Mountain completes the following:
makes a cash payment of $180,207 to HDSI; and
issues 6 million shares to HDSI.
Any shares issued in connection with the Debenture Settlement and the Debt Settlement will be issued in reliance of certain prospectus and registration exemptions under applicable securities legislation and are subject to a four month hold period.
Any HDSI principal that is also a member of the Quartz Mountain Board of Directors has abstained from voting on the Debt Settlement. The Debenture Settlement and Debt Settlement are subject to regulatory approval, including acceptance by the TSX Venture Exchange.
Subsequent to completion of the Debenture Settlement and Debt Settlement, Quartz Mountain intends to complete a 10:1 consolidation of its common shares and, thereafter, to pursue a new transaction or acquire a new asset.
For further details, please visit the Company's website at www.quartzmountainresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
Ronald W. Thiessen
President and CEO
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Quartz Mountain Resources Ltd.
14th Floor -1040 West Georgia Street