Lamelee intends to rollback shares at perhaps 20 to 1, and return all claims to Fancamp.
The news release reads, in part
"The surge in iron ore supply from Australia and Brazil and slowing demand in China caused seaborne iron prices to plummet in 2015. Forecasts for 2016 project a continued erosion of iron ore prices. Financial markets react to this situation by significantly curtailing the availability of funds for the development of new mines. Reviewing the situation, the actions of the major iron miners to defend market share and industry forecasts with respect to the evolution of global steel and iron ore markets, the board concluded that it is most likely that iron ore prices will remain depressed and access to capital markets closed for a period longer than Lamelee can withstand.
Given these circumstances, the board concluded that the course of action, which is described below, is the one that offers existing shareholders the best chances to save and better their investment. In a nutshell, the objective is to maximize the value of Lamelee's listing by performing a merger, amalgamation or business combination with a private mining exploration or junior mining company seeking to acquire a TSX Venture Exchange-listed corporation.
To facilitate the achievement of this objective, the following course of action needs to be completed:
- A share consolidation to reduce the current number of shares outstanding:
- Should Fancamp, on its own initiative after the share consolidation, voluntarily return all its Lamelee shares for cancellation, then the approximate number of outstanding Lamelee shares will be a minimum of 2,391,948 Lamelee shares (or 2,458,659 Lamelee shares if the debts (as defined hereinafter) are converted into Lamelee shares."
