Golden Hope Proposes a Share Consolidation to its Shareholders (tnw)
(via Thenewswire.ca)
Toronto, ON / June 2, 2014 / TNW-ACCESSWIRE / Golden Hope Mines Limited (TSX VENTURE: GNH)(Pink Sheets: GOLHF) - Golden Hope Mines Limited ("GNH, or the Company ") announces that its shareholders will be asked to approve a consolidation of the Company's common shares at a ratio of up to thirty (30) existing common shares for one (1) new common share (the "Share Consolidation"), at a special meeting of the shareholders of the Company (the "Special Meeting") to be held on June 30, 2014 in the Company's offices situated in the City of Montreal, at 1178 Phillips Place, Suite 230, Montreal, Quebec H3B 3C8.
If approved by the shareholders, the Company's Board of Directors will have the ability to implement the Share Consolidation. The Company currently has an aggregate of 141,032,358 common shares issued and outstanding. The Share Consolidation, at the maximum ratio proposed, would reduce the outstanding common shares to 4,701,078 common shares.
The Board of Directors believes that the Share Consolidation is in the best interests of the Company and is recommending that shareholders vote in favour of the Share Consolidation in order to: (i) increase the individual common share price to exceed the $0.05 TSX Venture Exchange minimum per share price for certain financings; (ii) reduce the number and increase the price of individual common shares making them more powerful incentives for vendors of mineral properties in connection with a potential property acquisition agreement; and (iii) increase the individual common share price to a level which may meet investing guidelines for certain institutional investors and investment funds, as well as making changes in the price level of the common shares less volatile on a percentage basis.
The bear market for junior companies on the TSX Venture continues to persist, and access to the capital required to fund mineral exploration has greatly diminished. The Company must proactively position itself so that it may not only ride out the storm, but also be well positioned to take full advantage of any potential mergers and/or acquisitions, to build shareholder value into the future. The Board of Directors believes that mineral exploration companies that take similar measures will improve their chances of surviving this bear market.
The share consolidation will not affect the Option Agreement between Golden Hope and Uragold Bay Resources (UBR: TSX/V).
The Share Consolidation is subject to both the approval of the shareholders at the Special Meeting and that of the TSX Venture Exchange. The Company will not be changing its name in conjunction with the Share Consolidation.
Additional information regarding the Share Consolidation will be available in the Company's information circular. The information circular will be posted at http://goldenhopemines.com/investors/agm2014/ or mailed to certain shareholders in connection with the Special Shareholders Meeting and will also be available on SEDAR at www.sedar.com
Golden Hope Mines Ltd
