Here is the Consolidation news...and a new name...
South Pacific Resources Share Consolidation and Name Change
Proposed
Business Wire - May 21, 1998 20:53
%SOUTH-PACIFIC-RESOURCES SHF. %NEW-YORK %MINING %METALS V%BW P%BW
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 21, 1998-- South Pacific Resources
Corp. (Alberta Stock Exchange:SHF) announces that at a Special Meeting to be held June 26,
1998 concurrent with the Company's Annual General Meeting, shareholders will be asked to
consider, and if thought appropriate, to approve two special resolutions, one of which will
provide for the consolidation of the Company's common shares on a one for four basis and the
other will allow the Company to change its name to LEXACAL INVESTMENT CORP.
Essentially, these matters have to do with the mid-1997 stock market collapse of the junior
mining sector and the Company's subsequent decision to suspend all Indonesian exploration
activities except those activities which are to be funded by parties who have or may enter into
joint venture arrangements with the Company.
The Company's current name reflects its historical business activities which were restricted to
both the mineral exploration business and to South East Asia. At present, the Company's Board
of Directors has not yet finalized the Company's new business direction but in the planning for
new directions, the Board of Directors feels that the Company should not be restricted to either
a geographic region or to the natural resources business. Accordingly, the proposed new name
is intended to allow for flexibility in both business direction and geographic sphere of influence.
The Company's Board of Directors also believes that inevitably, the Company will be required to
issue additional common shares in order to obtain the funding necessary to pursue new
business directions. The current large number of outstanding shares coupled with an
approximate $0.13 share price creates an unattractive profile for investors considering
investing in an equity financing of the Company's common shares. The Board of Directors
believes the proposed share consolidation will improve the Company's future abilities to raise
equity financing on better terms than would otherwise be available.
Details concerning these matters will be mailed to all shareholders on May 22, 1998. The
implementation of the proposed share consolidation and name change is contingent on
shareholder and regulatory approvals.
The Alberta Stock Exchange has neither approved or disapproved the information contained
herein.
CONTACT: South Pacific Resources Corp.
Robert Chase, 604/687-5305
email: spacific@axion.com |
