Aurcana Announces Proposed Share Consolidation
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 13, 2013) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF)(PINKSHEETS:AUNFF) is pleased to announce that is proposing a consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation common share for every eight (8) pre-consolidation common shares.
"After carefully considering Aurcana's growth and strategic objectives, we believe that a consolidation could provide significant benefits to the company and its shareholders. This change may open the door to a large base of potential new investors and will qualify the company for a possible dual listing on a U.S. or other major stock exchange. This is an important step in Aurcana's strategic efforts to become a senior silver producer," said Mr. Lenic Rodriguez, President & CEO.
Rationale
A share consolidation of the company's issued and outstanding common shares is in line with Aurcana's strategic and growth objectives to become a major senior silver producer.
This action has no impact on the company's value or future cash flows.
While there are no guarantees, there may be important benefits that the proposed consolidation could provide, including:
• A higher post consolidation price per share could make Aurcana eligible for investment by a large base of potential new investors, who cannot otherwise invest below a minimum per share value.
• A larger investors pool may also result in a possible increase in trading volumes.
• A higher post consolidation price per share could also improve the company's ability to pursue a dual listing on a major exchange and finance in the market, if warranted in the future.
• An increase in the share price in absolute dollar terms may improve the market perception of Aurcana's stock.
• The proposed consolidation could also align the company's number of outstanding shares relative to its peers.
If approved, the Consolidation would reduce the Company's 467,157,647 issued and outstanding Common Shares to approximately 58,394,706 Common Shares. The exercise or conversion price of outstanding stock options and warrants would be proportionately adjusted based upon the same consolidation ratio. The company name will remain unchanged after the consolidation.
The proposed Consolidation is subject to the approval of the TSX Venture Exchange and Aurcana's shareholders.
Full details regarding the proposed consolidation will be included in the information circular to be mailed to all Aurcana shareholders of record on February 26, 2013 and posted on www.SEDAR.com in connection with the Special Meeting of Shareholders, which is scheduled to be held on Thursday, March 28, 2013.
About Aurcana Corporation
Arcana Corporation is an emerging senior silver producer with two operating mines located in Mexico and Texas, United States.
La Negra Mine, Mexico, current installed capacity is 2,500tpd. In order to allow for an increase in future production, La Negra mine is now working to increase mill capacity to 3,000tpd by the end of Q1, 2013.
La Negra has a NI 43-101 M&I resource of 115.1 million (mm) oz silver, 1,418.7 mm lbs zinc, 539.5 mm lbs lead and 269.5 mm lbs copper and an Inferred Resource of 56.5 mm oz silver, 657.4 mm lbs zinc, 263.0 mm lbs. lead and 132.3 mm lbs copper.
Commissioning and mill testing of the Shafter Mine in Texas commenced on April 1, 2012 and commencement of commercial production was achieved in December 2012. The Shafter Silver Mine, according to the data from the published feasibility study, is expected to produce 3.8 million ounces of silver over 12 months once ramp up to its 1,500tpd capacity is completed.
Shafter has a NI 43-101 M&I Resource of 23.9 mm oz of silver and an Inferred Resource of 22.8 mm oz of silver. (All National Instrument 43-101 technical reserve reports can be found on SEDAR at: www.sedar.com). Aurcana continues to focus on its future growth. Please visit our website @ http://www.aurcana.com for more information
Corporate
The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez,
President & CEO
Contact Information:
Aurcana Corporation
Lenic Rodriguez
President and CEO
(604) 331-9333 or Toll Free: (866) 532-9333
Aurcana Corporation
Catalin Chiloflischi
Corporate Communications Director
(604) 331-9333 or Toll Free: (866) 532-9333
(604) 633-9179 (FAX)
ir@aurcana.com
http://www.aurcana.com
StrataStar Group
Gary Lindsey
720-273-6224
gary@strata-star.com
http://www.stockhouse.com/news/canadianreleasesdetail.aspx?n=8736930
Dan  |
