Montan Mining Corp. said Feb. 21 that it signed a deal with Lions Bay Capital Inc. to restructure its debts. The restructuring will result in Lions Bay becoming a control person of Montan.

Under the deal, the junior gold miner will receive a C$185,000 loan, while Lions Bay will purchase certain debts in exchange for about C$1.0 million in shares. Settlement of the debt will be through the issuance of Montan shares. In addition, Montan will undertake a previously announced 1-for-3 share consolidation.

Following the completion of the restructuring, Montan will retain its Cerro Dorado mine and mill in Peru. Montan expects to acquire additional funding to commission the Cerro Dorado mill complex through a private placement.