Barranco Gold Mining Corp. Moves Forward with Debt Settlement Strategy

Barranco Gold Mining Corp. Plans Debt Settlement

Overview
Barranco Gold Mining Corp. (CSE: BAR), a junior mining exploration company, recently revealed a significant financial maneuver aimed at improving its fiscal health. The corporation intends to settle a total of $250,000 in debt with a non-arm's length creditor by issuing 390,625 common shares at a rate of $0.64 each. This strategic decision is designed to alleviate pressure on the company's cash flow and ensure that essential working capital remains intact.

Details of the Debt Settlement
The debt settlement involves a related-party transaction, as the creditor is the spouse of Reno Calabrigo, the company's director and CEO. Therefore, this transaction falls under the definition of a related party transaction as per Multilateral Instrument 61-101. Notably, the agreement does not mandate a formal valuation or minority shareholder approval due to the valuation being under 25% of the company's market capitalization.

The Importance of Regulatory Approval

The closing of this debt settlement is contingent upon receiving all necessary regulatory approvals, particularly from the Canadian Securities Exchange (CSE). After the shares are issued, they will be subjected to a hold period of four months and one day, reflecting normal securities regulations.

Board's Decision-Making Process
The company's board has concluded that issuing shares to settle the debt is the most effective method to preserve liquidity for ongoing operations. While Reno Calabrigo recused himself from deliberations related to this transaction due to his direct interest, the remaining board members reviewed the proposal to ensure it aligned with the best interests of the company.

Barranco Gold Mining's Future Plans

As a junior mining exploration firm, Barranco focuses on developing its projects, particularly the King Property located in British Columbia's Nicola and Similkameen Mining Divisions. The company is also on the lookout for potential additional property opportunities for exploration and development.

Conclusion
Barranco Gold Mining Corp.'s decision to settle its debts through share issuance demonstrates a proactive approach to managing financial obligations while prioritizing ongoing investment in exploration activities. As market conditions fluctuate and the mining industry evolves, such strategies are critical for sustaining operational momentum and delivering shareholder value.

Forward-Looking Statements
This news release includes forward-looking information as defined by Canadian securities legislation. Due to the inherent uncertainties and risks tied to future events, actual results may differ materially from those anticipated. The management of Barranco remains committed to transparently communicating any developments impacting the company's performance, as outlined in their regular disclosures available through SEDAR.

ON BEHALF OF THE BOARD
Reno J. Calabrigo, CEO

Please note: The CSE and its Market Regulator do not accept responsibility for the accuracy or adequacy of this release.