SearchGold Recommends a Vote for The Share Consolidation to Its Shareholders
June 15 2010 - 9:15AM
Marketwired
SearchGold Resources Inc. ("SearchGold" or the "Company")(TSX
VENTURE: RSG)(FRANKFURT: S1O) announced on May 31st 2010 that it
will will seek shareholder approval at its Special and annual
Meeting of shareholders to be held in Montreal on June 23, 2010, to
consolidate its common shares at a ratio of one (1) new share for
each tranche of ten (10) outstanding common shares. In order to be
effective, the consolidation resolution must be approved by at
least two-thirds of the shareholder votes cast at the Meeting and
be accepted by the TSX Venture Exchange.
SearchGold intends to remain focussed on West and Central Africa
with the objective to target, explore and develop high potential
gold projects. The Company has recently been evaluating mining
projects in new African jurisdictions which are geographically
accretive with its current position.
President and CEO Philippe Giaro stated: "The recent financial
crisis has forced many Canadian junior exploration companies out of
Africa, generally closer to their home base. SearchGold remains one
of the few pure explorers to have retained its position in this
vast, mineral-rich continent through an established presence in
Burkina Faso, Gabon and Guinea. Moreover, with its current
partners, Managem and Swala Resources plc, and through corporate
transactions which resulted in SearchGold's shareholding in Stellar
Diamonds plc and Golden Share Mining Corporation, SearchGold has
been able to retain an interest in all the important assets it has
acquired and developed during its existence as a public company.
While its monetary value cannot be determined, SearchGold's ability
to acquire significant assets and identify the right partners for
their development brings intrinsic fundamental long term value to
the Company. This is further enhanced by management's ability to
execute the proper corporate transactions to finance and develop
these assets."
While SearchGold is no exception as many junior mining companies
are still suffering from the devastating effects of the recent
financial crisis, SearchGold's share price continues to hinder its
development despite the Company's efforts to advance quality
assets. Management therefore believes that the share consolidation
will provide greater financial flexibility and could better
position the Company to raise the funds it requires to finance its
ongoing business.
Given that TSX Venture Exchange rules prevent issuing shares at
a price below $0.05, management considers it highly desirable that
the shareholders approve the consolidation so as to increase the
market price of SearchGold's common shares above that threshold
(based on the most recent closing price). Management therefore
recommends a vote in favour of the share consolidation to its
shareholders.
SearchGold now has 148,530,171 common shares outstanding. If the
consolidation is approved, the Company will have approximately
14,853,017 common shares outstanding. The Company will not change
its name but would have a new stock symbol.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: SearchGold Resources Inc. Philippe Giaro, President
& CEO 011-32-473-52-30-29 phgiaro@skynet.be
http://www.searchgold.ca
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