Share Consolidation InevitableIt looks like a share consolidation will go ahead one way or another.
From the Management Information Circular filed on Sedar
III. Share Consolidation
As at the date hereof, the Corporation has 167,971,903 common shares issuedand outstanding. It is proposed that the Corporation consolidate its shares,which will facilitate the Corporation’s ability to pursue financings for theongoing exploration and development of its properties, including the SimkarProperty. Accordingly, management is of the view that it would be in the bestinterests of the Corporation and its shareholders to consolidate the commonshares in the capital of the Corporation on the basis of one (1) new commonshare for every four (4) common shares currently outstanding. No fractionalshares will be issued in connection with the consolidation; if, as a result ofthe consolidation, a shareholder becomes entitled to a fractional share, suchfraction will be rounded down to the nearest whole number. Shareholders shouldnote that a previous consolidation resolution was proposed and approved at theCorporation’s last shareholders meeting held on December 20, 2010 to consolidatethe Corporation’s common shares on the basis that the consolidation would be notless than 0.333 of one new common share for every one common share currentlyoutstanding (i.e. one new common share for every three (3) common sharescurrently outstanding); that previous consolidation has not yet beenimplemented. This new consolidation being proposed is an alternative to thepreviously approved but not yet implemented consolidation and, accordingly, ifthe new consolidation is approved, the previously approved proposedconsolidation will be abandoned and the Corporation’s shares would beconsolidated solely on the basis of one new common share for every four (4)common shares currently outstanding and, upon the new share consolidationbecoming effective, the 167,971,903 issued and outstanding shares as at the datehereof would be consolidated into 41,992,976 issued and outstanding shares.On the other hand, if the newconsolidation is not approved, the Corporation intends to proceed with andimplement the previously approved consolidation on the basis of one new commonshare for every three (3) common shares currently outstandingand, upon the previously approved share consolidation becomingeffective, the 167,971,903 issued and outstanding shares as at the date hereofwould be consolidated into 55,990,634 issued and outstanding shares. The Boardof Directors will also have the authority to determine when to implement theconsolidation or to decide not to implement it.