TORONTO, Aug. 7, 2012 /CNW/ - Mukuba Resources Limited (TSXV: MKU) ("Mukuba" or the "Company") announced today that it has received confirmation of the mailing to shareholders of its management information circular for a special meeting (the "Meeting") to consider the previously announced consolidation of the Company's outstanding common shares (the "Common Shares") at a ratio of four pre-consolidation Common Shares for one post-consolidation Common Share (the "Consolidation") and the compensation payment to be paid to the directors and Chief Executive Officer of the Company. The Meeting is scheduled to occur on August 30, 2012 with a record date of July 30, 2012 (the "Record Date").
As at the Record Date, the authorized share capital of the Company consisted of an unlimited number of Common Shares of which 77,279,639 Common Shares were outstanding. After the Consolidation, the authorized share capital will continue to consist of an unlimited number of Common Shares without par value, of which approximately 19,319,909 Common Shares in the capital of the Company would be issued and outstanding, provided that the Consolidation is completed on the basis of one (1) new for four (4) old Common Shares without par value, as currently proposed.
No fractional Common Shares will be issued as a result of the Consolidation. In the event that a given shareholder's holdings would result in the issuance of fractional Common Shares, the holdings of the shareholder would be rounded down to the nearest whole number of Common Shares.
The Company's name and stock trading symbol will not change in connection with the Consolidation.
Management is proposing the Consolidation in order to facilitate raising additional capital. The Company has announced a private placement of units, consisting of Common Shares and Common Share purchase warrants that is expected to close on or about September 12, 2012 (the "Private Placement"). The Private Placement is conditional on the approval and implementation of the Consolidation.
Completion of the Consolidation and the payment to the directors and Chief Executive Officer of the Company are each subject to the receipt of all required regulatory and shareholder approvals, including acceptance by the TSX Venture Exchange.
About the Company
Mukuba is a Canadian mining company focused on the exploration and development of certain African base metal assets alone and through a joint venture partner. These assets include a 100% interest in the Northcore Project, which is licensed for both copper and cobalt and encompasses approximately 2,274 square km of geologically prospective ground in the Central African Copperbelt region of Zambia. Mukuba is also a party to a joint venture with Benzu Resources Limited to explore and develop a copper and base metals project in the Democratic Republic of the Congo.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future business and planned activities, including matters relating to the Consolidation, future shareholder meetings and the compensation payment to the directors and Chief Executive Officer of the Company. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
SOURCE: Mukuba Resources Limited
For further information:
Kelly Ehler, interim President and CEO
TEL: +1 (416) 368 4013
FAX: +1 (416) 603 9200