Silver X Mining Corp. (TSXV:AGX) – Debt Settlement Cleans Up Balance Sheet
Silver X announced that its Board of Directors have approved the debt settlement of ~US$4.2M with Baker Steel Resources Trust Ltd. (LSE:BSRT, Not Rated). Upon closing of the transaction, Baker Steel will own ~19.5M shares, or 13.89% of Silver X’s issued and outstanding shares. Overall, this deal will improve Silver X’s balance sheet by clearing the company’s debt, and it further adds to Baker Steel’s shareholdings, making them a strategic institutional shareholder. While we consider this to be a positive move for AGX, given that the deal is dilutive with the issuance of additional shares, we lower our target to C$0.85/sh (was C$1.00/sh).