Plan to consolidate share capital
Despite the rise in the gold price during 2019 and the recent merger and acquisition activity at the larger end of the resource sector, the recent exceptional underperformance of the junior resource sector is well documented -- recent trading activity in shares of the company has declined to one cent. Owing to restriction placed on the regular issuance of new shares at a price below five cents, the company faces a constraint on its ability to raise growth capital to supplement the benefits of the Cerro Dorado sale. Following careful consideration, the board has resolved to consolidate 132,294,222 preconsolidation shares on issue on the basis of 1:5, reducing the issued shares in the company to 26,458,844 postconsolidation shares.