CanXGold Mining Corp Updates on Negotiations with Senior Secured Creditor

VANCOUVER, BC / ACCESSWIRE / April 17, 2023 / CanXGold Mining corp (TSXV:CXG)(OTC PINK:GDMRF)(FRANKFURT:3G8B), reports that ("Golden Dawn Mining Inc." or the "Company") its senior secured creditor, RIVI Opportunity Fund LP ("RIVI") has commenced a court action to enforce its debt claims against the Company (the "RIVI Credit"), including seeking the appointment of a receiver or receiver-manager of all of the Company's assets, undertakings and properties (the "Enforcement Action").

Prior to November 2022, the company had been carrying on its business in reliance on certain debt restructuring amendments to the terms of the RIVI Credit agreed to in discussions and correspondence between the parties' respective principals over a period of months leading up to December 2021 (the "Settlement Terms"). From December 2021 to November 2022, the Company abided by the Settlement Terms, including making: (i) debt servicing payments to RIVI in excess of CAD$1.0 million; and (ii) expenditures in excess of CAD$1.0 million to maintain its properties, permits and other assets.

Despite the Company's compliance with the Settlement Terms, RIVI has breached its agreements with Company by: (iii) failing to table drafts of formal written agreements to document Settlement Terms for consideration by the Company; and (iv) outright disclaiming material provisions of the Settlement Terms upon which, to RIVI's benefit, the Company had relied to inform its conduct for almost a year. Having exhausted all reasonable efforts to resolve the impasse, on November 2, 2022, the Company announced that it was suspending any further expenditures on the maintenance of its properties, permits and related assets until RIVI agreed to honour its commitments.

The Company is disappointed that, after remaining silent for the past five months, rather than return to the table to settle definitive agreements consistent with the Settlement Terms, RIVI has chosen to renege on its agreements and commence the Enforcement Action. In response, the Company is preparing one last settlement proposal for presentation to RIVI in the coming days. If RIVI rejects the Company's final proposal and insists on continuing its Enforcement Action, the Company intends to mount a vigorous legal defence to hold RIVI to its agreements and protect the interests of its shareholders.