Bolivar announces share consolidation and letter of intent on Cuban properties
TORONTO--(BUSINESS WIRE)--June 27, 1997--At the annual and special meeting of Bolivar Goldfields Ltd. (``Bolivar'') (TSE:BVG) held on June 19, 1997, the shareholders approved a special resolution consolidating Bolivar's shares on a one-for five basis.
The Toronto Stock Exchange posted the consolidated shares for trading on Wednesday, June 25, 1997, and shareholders will now be able to exchange their pre-consolidation share certificates for new certificates representing the consolidated shares by submitting the old certificates to Bolivar's transfer agent, Equity Transfer Services Inc.
Management of Bolivar had requested the consolidation because they felt that the shares were undervalued and that the consolidation would enable Bolivar to recapture this value, as management believes that a smaller number of shares trading at a higher price would make Bolivar more attractive to potential investors, and would further enhance the value of the shares held by current shareholders.
In addition, they felt that the large number of shares outstanding hindered the ability of Bolivar to raise the funds it required to maintain its business activities and more specifically management had also received advice that the financing of its Tomi project could be more easily accomplished with fewer shares outstanding trading at a higher price.
Bolivar is also pleased to announce that on June 18, 1997, it signed a letter of intent with MacDonald Mines Exploration Ltd. (``MacDonald''), a company listed on the Alberta Stock Exchange, under which Bolivar agreed to sell all of its interest in Mineria Siboney Goldfields A.V.V. (``Mineria Siboney'') to MacDonald in exchange for 20,000,000 treasury shares of MacDonald.
Mineria Siboney holds Bolivar's interests in the Republic of Cuba, consisting of four concessions encompassing approximately 800,000 hectares. As part of the transaction, Bolivar will have the right to nominate two members to MacDonald's six member board of directors, and Miguel de la Campa, president and CEO of Bolivar, will serve as co-chairman of MacDonald, together with MacDonald's president, Frank C. Smeenk. The transaction is subject to the completion of mutually satisfactory due diligence and regulatory approval.
No stock exchange, securities commissino or other regulatory authority has approved or disapproved the information contained herein. |
