Morro Bay Resources (MRB-V), has begun a "review of strategic alternatives," which may include selling its assets or merging with another company. In other words, it has put itself on the auction block. Morro Bay Resources owns 51 per cent of the past-producing Penoles property in Mexico, with the remaining 49 per cent belonging to Riverside Resources Inc. (RRI-V). Over the past year, Morro Bay Resources had hoped to raise up to $3.5-million in two private placements, but it ended up selling only $667,782 worth of units at five cents. This is not enough to finance its Penoles exploration work.
MRB news release Feb 19, 2016
Morro Bay Resources advises that its Board of Directors has initiated a review of strategic alternatives, which may include, among other things, a material re-financing of the Company, a sale of all or parts of its business, a merger or other business combination or other strategic transaction. The Board of Directors has formed a Special Committee, consisting of three current directors - Carl von Einsiedel, Garth Kirkham, and Keith Erickson. Pursuant to the Special Committee Charter, these individuals have the authority of the Company to speak to third parties in regard to strategic alternatives. The Company’s review process has not been initiated in response to the receipt of any transaction proposal.
The Company does not intend to provide further updates on its strategic review until such time as the Board of Directors determines is appropriate. There can be no guarantee that this review will result in a transaction, or if a transaction is undertaken, as to its terms or timing.
About Morro Bay
Morrow Bay is a junior mineral exploration company based in Calgary, Alberta, Canada, focused on the exploration for precious metals in Mexico. Morro Bay’s business strategy is to build shareholder value by rapidly advancing the Peñoles Project in Mexico through the resource delineation stage.
Further Information
For further information please contact:
Morro Bay Resources Ltd.
|
| John C. Zang
| Investors Relations:
| President and Chief Executive Officer
| Patrick Piette
| E: jzang@morrobayresources.com
| E: ppiette@morrobayresources.com
| T: 403 680 9264
| T: 416 526 9911
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