TORONTO, June 9 /CNW/ - As stated in the Management Information Circular dated May 10, 2010, Medoro Resources Ltd. (TSX-V:MRS) is announcing its proposal to consolidate its issued and outstanding common shares on a three-for-one basis, subject to the approval of the TSXV and shareholders of the Corporation which will be sought at its meeting to be held at 4:30 p.m. (Toronto time) on Wednesday, June 9, 2010. As at June 8, 2010, the number of issued and outstanding common shares was 414,108,087.
Management of the Corporation believes that the large number of common shares that are currently listed on the TSX Venture Exchange hinders the ability of the Corporation to raise the money it requires to fund its business activities, particularly as the Corporation looks for new business acquisitions and the funding of the exploration and development of its properties in Colombia. Management believes that a smaller number of shares trading at a higher price would make the Corporation more attractive to potential investors, and would further enhance the value of the common shares held by current shareholders. Management accordingly wishes to reduce the number of common shares outstanding on a three-for-one basis so that the number of issued and outstanding common shares will be approximately 138,036,029. No fractional common shares will be issued to shareholders as a result of the consolidation. The number of common shares issued to shareholders as a result of the consolidation shall be rounded up to the nearest whole common share in the event that a shareholder would otherwise be entitled to a fractional common share representing 0.5 or more of a common share as a result of the consolidation, and shall be rounded down to the nearest whole common share in the event that a shareholder would otherwise be entitled to a fractional common share representing less than 0.5 of a common share as a result of the consolidation. No compensation will be issued to shareholders as a result of rounding down.
The Corporation's name will not be changed in conjunction with the consolidation.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration, development and mining company with a primary emphasis on Colombia. The Company operates the producing Mineros Nacionales gold mine located in Zona Baja at Marmato and is conducting an exploration and infill drilling program at its Marmato Project to upgrade and expand its gold resources there.
On March 31, 2010, Medoro signed an asset purchase agreement to acquire all the assets of Frontino Gold Mines Limited. This acquisition is scheduled to close within 15 days after the expiration of the 4 months after the date of the signing of the acquisition agreement, subject to certain conditions including legal and technical due diligence and requisite regulatory approvals (see the Company's press releases dated March 31, 2010 and June 8, 2010). If acquired, Medoro will have a 5% carried interest in Frontino and a right for one year from the Closing of the acquisition to increase its interest to 50%.
Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela where it is continuing its efforts to obtain an exploitation permit to allow development of these gold properties when circumstances in Venezuela allow. Medoro owns interests in gold exploration properties in Mali in respect of which it is seeking possible joint venture partners to further explore these properties.
Additional information on Medoro Resources Ltd. can be found on the Company's website at www.medororesources.com and by reviewing the Company's profile on SEDAR at www.sedar.com.
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Medoro and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medoro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Medoro disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE MEDORO RESOURCES LIMITED
For further information: For further information: John Hick, President & CEO, (416) 603-4653; Linda Dorrington, Director, Investor Relations, (416) 603-4653