REGINA, Sept. 13, 2012 /CNW/ - Strategic Resources Inc. ("Strategic" or the "Corporation"), is announcing that at its upcoming Annual Special Meeting (the "Meeting"), to be held on October 4, 2012, at 11:00 am at the offices of Gardiner
Roberts, LLP, Suite 3100, Scotia Plaza, 40 King Street West, Toronto,
Ontario, M5H 3Y2, shareholders will be asked to approve a special
resolution approving a consolidation (the "Consolidation") of the Corporation's issued and outstanding Common Shares. Currently,
the Corporation has 73,002,132 Common Shares outstanding. If the full
Consolidation was undertaken, the outstanding Common Shares would be
reduced to approximately 7,300,213. No fractional shares will be
issued Instead, if, as a result of the Consolidation, a shareholder is
entitled to a fractional Common Share, such fractional Common Share
that is less than ½ of one post-Consolidation Common Share will be
cancelled and each fractional Common Share that is at least ½ of one
post-Consolidation Common Share will be rounded up to one whole
post-Consolidation Common Share. The Corporation is not intending to
change its name in concert with the Consolidation.
Background and reasons for the Consolidation
The board of directors of the Corporation (the "Directors" or "Board") believe that in order to facilitate access to additional working
capital to further the development of the Corporation's projects
including its New Mexico rare earth project, it may be necessary to
consolidate the issued and outstanding share capital.
The Corporation will continue in its efforts to raise additional working
capital without resorting to a share consolidation, however, given the
present difficult market conditions for junior exploration companies it
may be necessary to undertake the Consolidation so as to bring the
share price above the minimum threshold for capital-raising as dictated
by TSX policies.
If the Special Resolution is approved, the Board will have authority to
consolidate the Common Shares at a ratio of up to ten (10) to one (1).
The Board will be permitted without further shareholder approval to
select a lower consolidation ratio if it deems appropriate. Approval
of the Consolidation by the shareholders would give the Board authority
to implement the Consolidation at any time. As at the date hereof,
assuming the shareholders approve the Consolidation, the Directors
intend to implement the Consolidation as soon as reasonably practical
following the Meeting, subject to TSXV approval. In addition,
notwithstanding approval of the Consolidation by the shareholders, the
Board, in its sole discretion, may revoke the Special Resolution and
abandon the Consolidation without further approval, action by, or prior
notice to Shareholders.
About Strategic Resources Inc.
Strategic Resources Inc. is a Canadian-based junior exploration company
with a Rate Earth exploration project in Lincoln County, New Mexico.
More information about the Corporation is available on line at www.strategicresourcesinc.ca.
Neither the 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.
Forward looking statements:
This news release may contain certain forward-looking inferences or
statements. These forward-looking inferences or statements are subject
to a variety of risks and uncertainties beyond the Corporation's
control or prediction and could cause actual events or results to
differ materially from those anticipated in such forward-looking
statements. Although the Corporation believes that the assumptions
inherent in the forward-looking statements are reasonable, undue
reliance should not be placed on these forward-looking statements.
These forward-looking statements are made as of the date hereof and the
Company assumes no responsibility to update them or revise them to
reflect new events or circumstances, except as required by law.
SOURCE: Strategic Resources Inc.
For further information:
Malcolm Bucholtz, President & CEO, Tel:1.306.525.0852 firstname.lastname@example.org