Argentum Silver (ASL-V) June 25, '14 board of directors has approved a consolidation of the company's issued and outstanding common shares and a non-brokered, $500,000 private placement of units in the capital of the company. Share consolidation
Subject to approval of the TSX Venture Exchange, the company's common shares will be consolidated on the basis of one postconsolidated common share for each five preconsolidated common shares. Following the consolidation, the number of outstanding common shares in the capital of the company will be 9,203,071. There will be no name or symbol change in conjunction with the consolidation. Management and the board believe that the consolidation is in the best interests of the company and its shareholders, as a successful completion of the consolidation will allow the company to complete its proposed financing. The consolidation will not change a shareholder's proportionate ownership in the company or the rights of holders of its common shares. Each common share outstanding after the consolidation will be entitled to one vote and will be fully paid and non-assessable.
Any fractional common share resulting from the consolidation that is less than one-half of one common share will be cancelled, and each fractional common share that is at least one-half of one common share will be changed to one whole common share. The company will commence with the consolidation process immediately, although no exact date has been set as an effective date of consolidation.
Financing
The company announces that, postconsolidation, it will conduct a non-brokered private placement of up to five million units in the capital of the company for gross proceeds of up to $500,000, subject to approval of the exchange.
The units will be priced at 10 cents (postconsolidation) and will each consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to purchase one additional common share at a price of 15 cents for one year from the date of closing and 20 cents in year two from the date of closing. Argentum will pay qualified parties a finder's fee in cash equal to 8 per cent of the total proceeds invested by subscribers introduced to Argentum by such parties and a non-transferable warrant entitling them to purchase that number of Argentum common shares equal to 8 per cent of the total number of units purchased by subscribers introduced to the offering by such parties. Each finder's warrant will have terms and conditions similar to that of the warrants issued under the offering. All finder's fees are subject to exchange approval. The proceeds of the offering will be used for exploration, and for environmental and mining permitting, on the company's Coyote project, as well as for general working capital. |
