At Brixton Metals (BBB-V) May 8, '14 annual meeting, the company's shareholders approved the company's proposal to authorize the board of directors to consolidate the common shares of the company at a ratio of up to 10 preconsolidated common shares for one postconsolidation common share. The company currently holds $2.1-million in cash as of May 7, 2014. Due to market conditions, short-term shareholders have put extreme selling pressure on the company's stock, in spite of continued positive news flow from the company. As a result of this overselling of the company's stock and now very low share price, management and the board of directors of the company believe that a consolidation is in the best interests of the company and its shareholders. A consolidation will allow the company flexibility to complete future financings as the board deems necessary; however, the company is not seeking to raise capital at this time.
The consolidation will not change a shareholder's proportionate ownership in the company or the rights of holders of common shares. Each common share outstanding after the consolidation will be entitled to one vote, and will be fully paid and non-assessable. As at the date of the annual meeting, the company had 114,908,757 common shares issued and outstanding. After giving effect to the proposed consolidation, there will be approximately 11,490,875 common shares issued and outstanding. The company will also be cancelling all outstanding stock options and will not be issuing new options until deemed appropriate by the board of directors.
The consolidation remains subject to TSX Venture Exchange approval. Further details regarding the consolidation are contained in the company's information circular dated March 27, 2014, relating to the annual meeting. A copy of the information circular is available under the company's profile on SEDAR.
Brixton Metals' 2014 exploration plan
The company has appointed SRK Consulting (Canada) Inc. to complete an initial National Instrument 43-101 estimate on the combined zones, Oban, Talisker and Glenfiddich, at its Thorn project, and expects this estimate to be released in 2014.
Brixton is actively seeking to acquire a potential large-scale gold/silver project in Nevada or Utah in 2014 to offset the seasonality factor at its Thorn project.
The company anticipates having crews mobilized to its Thorn camp by early June, 2014. The objective of the program at Thorn during the phase 1 2014 program is the following:
- Drill test the large gold-in-soils anomaly at the Outlaw zone;
- Drill test for extension to high-grade silver-gold-copper veins at the Glenfiddich zone;
- Collect core samples for specific gravity measurements;
- Establish an initial resource base at the Oban, Talisker and Glenfiddich zones.
Sorin Posescu, PGeo, vice-president of exploration, is a qualified person as defined under National Instrument 43-101 standards, and has reviewed and approved the technical information in this news release. |
