10:39 AM EST, 12/11/2017 (MT Newswires) -- Pele Mountain Resources (GEM.V) said Monday it has entered into a debt settlement of approximately $1.2 million of its outstanding debts.

Under the agreement, the company will settle approximately $1.0 million in debt through the issuance of an aggregate of 12.6 million common shares at $0.068 apiece, $87,000 in debt through 1.0 million common shares at $0.09 apiece, $68,189 will be paid in cash and $94,221 owed to related party creditors will be cleared.

Pele also said that Martin Cooper, the Interim CEO and President, Vice President, Indigenous Relations and a director of the corporation, has waived $114,750 in salary accrued between January 2016 and May 2017. The waiver of salary, together with the debt settlement, will reduce Pele's indebtedness to less than $123,000 and increase the number of issued and outstanding common shares to 34.6 million, said the company.

Cooper said the restructuring of Pele's debt is important for its future prospects.

Shares at last look were down 5.6% to $0.085 apiece in a 52-week range of $0.080 - 0.150.