TORONTO, July 30, 2020 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to report, further
to its news release dated July 22,
2020, the previously announced consolidation of the common
shares in the capital of the Corporation (the "Common Shares") will
come into effect as of the open of trading on July 31, 2020 on the basis of one (1)
post-consolidation Common Share for every four and a half (4.5)
pre-consolidation Common Shares (the "Consolidation"). Prior to the
Consolidation, approximately 648,700,031 Common Shares were issued
and outstanding. Following the effective date of the Consolidation,
approximately 144,155,562 Common Shares will be issued and
outstanding. No fractional Common Shares will be issued as a result
of the Consolidation. Any fractional Common Shares resulting from
the Consolidation will be rounded up to the next higher whole
number if the fraction is a half (0.5) Common Share or greater, and
rounded down, without compensation, to the next lower whole number
if the fraction is less than a half (0.5) Common Share. As a result
of the Consolidation, the Corporation's outstanding warrants will
be proportionately adjusted such that four and a half (4.5)
warrants are now exercisable for one post-Consolidation Common
Share at an exercise price of $2.25
per Common Share. Proportionate adjustments will also be made to
the Corporation's other convertible securities.
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The Consolidation has been approved by the Toronto Stock
Exchange. The Corporation's symbol remains KRR. Computershare
Investor Services Inc. ("Computershare") has mailed letters of
transmittal to the Corporation's registered shareholders providing
instructions on exchanging share certificates and DRS advices
representing pre-Consolidation Common Shares for share certificates
and DRS advices representing post-Consolidation Common Shares.
Shareholders are encouraged to send their completed letter of
transmittal, together with any share certificates representing
pre-Consolidation Common Shares, to Computershare in accordance
with the instructions in the letter of transmittal.
Sale of shares of Orford Mining Corporation
The Corporation also announced today that it has agreed to sell,
directly and through a wholly-owned subsidiary, 11,251,456 common
shares ("Shares") of Orford Mining Corporation ("Orford") at a
price of $0.09 per share for
aggregate consideration of $1,012,631. The Corporation currently owns or
controls 22,502,911 common shares and warrants to purchase up to an
additional 1,095,505 common shares of Orford representing an
approximate 23.6% interest in Orford on an undiluted basis and 24.5% on a
partially diluted basis. Immediately following the completion of
this sale, the Corporation will own or control 11,251,455 common
shares and warrants to purchase up to 1,095,505 common shares,
representing an approximate 11.8% interest in Orford on an undiluted basis and 12.8% on a
partially diluted basis. The Corporation disposed of the Shares of
the Orford for investment purposes
only. The Corporation intends to review, on a continuous basis,
various factors related to its investment, including (but not
limited to) the price and availability of the securities of
Orford, subsequent developments
affecting Orford or its business,
and the general market and economic conditions. Based upon these
and other factors, the Corporation may decide to purchase or sell
securities of Orford. For
additional information, an early warning report will be filed on
SEDAR under Orford's profile or
may be obtained by contacting the contact person listed below for
the Corporation.
About Karora Resources
Karora is focused on growing gold production and reducing costs
at its integrated Beta Hunt Gold Mine and Higginsville Gold
Operations ("HGO") in Western
Australia. The Higginsville treatment facility is a low-cost
1.4 Mtpa processing plant which is fed at capacity from Karora's
underground Beta Hunt mine and open pit Higginsville mine. At Beta
Hunt, a robust gold mineral resource and reserve is hosted in
multiple gold shears, with gold intersections along a 4 km strike
length remaining open in multiple directions. HGO has a substantial
historical gold resource and highly prospective land package
totaling approximately 1,800 square kilometers. Karora has a strong
Board and management team focused on delivering shareholder value.
Karora's common shares trade on the TSX under the symbol KRR.
Karora shares also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning Forward-Looking
Statements
This release contains certain "forward looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, statements with respect to the closing of the
private placement.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
Cautionary Statement Regarding the Higginsville Mining
Operations
A production decision at the Higginsville gold
operations was made by previous operators of the mine, prior to the
completion of the acquisition of the Higginsville gold operations
by Karora and Karora made a decision to continue production
subsequent to the acquisition. This decision by Karora to continue
production and, to the knowledge of Karora, the prior production
decision were not based on a feasibility study of mineral reserves,
demonstrating economic and technical viability, and, as a result,
there may be an increased uncertainty of achieving any particular
level of recovery of minerals or the cost of such recovery, which
include increased risks associated with developing a commercially
mineable deposit. Historically, such projects have a much higher
risk of economic and technical failure. There is no guarantee that
anticipated production costs will be achieved. Failure to achieve
the anticipated production costs would have a material adverse
impact on the Corporation's cash flow and future profitability.
Readers are cautioned that there is increased uncertainty and
higher risk of economic and technical failure associated with such
production decisions.
SOURCE Karora Resources Inc.