Vancouver, British Columbia (FSCwire) - Ximen Mining Corp. (TSX-V: XIM) (the “Company” or “Ximen”) announces that it is proposing to consolidate the outstanding common shares of the Company (the “Shares”) on the basis of five (5) pre-consolidation Shares for one (1) post-consolidation Share (the “Consolidation“). In addition, after completion of the Consolidation, the Company intends to undertake a rights offering to its shareholders to provide working capital and to fund the exploration plan for the Company’s Brett Gold Project.
Consolidation
Management and the Board of Directors has concluded that the Consolidation is necessary and in the best interests of the Company. The Board believes that the proposed share consolidation is necessary to facilitate new equity investment in the Company to finance continuing business activities and assist in its overall marketing efforts.
The Consolidation will not change a shareholder’s proportionate ownership in the Company or the rights of holders of Shares. Each Share outstanding after the Consolidation will be entitled to one vote and will be fully paid and non-assessable. There will be no name change in conjunction with the Consolidation.
Under the terms of the proposed Consolidation, no fractional Shares will be issued as a result of the Consolidation as any fractional Shares created as a result of the Consolidation will be rounded up or down to the nearest whole number. There are currently 93,616,439 Shares issued and outstanding. Following the Consolidation, there will be approximately 18,723,287 Shares issued and outstanding, subject to treatment of fractional post-Consolidation Shares.
The Consolidation is subject to approval by the TSX Venture Exchange.
Rights Offering
After completion of the Consolidation, the Company intends to undertake a rights offering to its shareholders for the purchase of post-Consolidation Shares of the Company. The rights offering will be subject to definitive terms and conditions, as well as receipt of prior approvals from the TSX Venture Exchange and the applicable securities regulatory authorities. Proceeds of the rights offering will be used to provide working capital for the Company, and to fund the exploration plan for the Company’s Brett epithermal Gold Property, located near Vernon, British Columbia.
Further information regarding the proposed rights offering will follow after the Consolidation is complete through subsequent announcements as well as a rights offering notice and circular which will be filed and sent to shareholders of record on a date to be determined.
