Golden Hope Proposes a Share Consolidation to its Shareholders
June 02 2014 - 9:09AM
Access Wire
Toronto, ON / June 2, 2014 /
ACCESSWIRE / Golden Hope
Mines Limited (TSX VENTURE: GNH)(Pink Sheets: GOLHF) -
Golden Hope Mines Limited ("GNH, or the Company") announces that
its shareholders will be asked to approve a consolidation of the
Company's common shares at a ratio of up to thirty (30) existing
common shares for one (1) new common share (the "Share
Consolidation"), at a special meeting of the shareholders of the
Company (the "Special Meeting") to be held on June 30, 2014 in the
Company's offices situated in the City of Montreal, at 1178
Phillips Place, Suite 230, Montreal, Quebec H3B 3C8.
If approved by the shareholders, the
Company's Board of Directors will have the ability to implement the
Share Consolidation. The Company currently has an aggregate of
141,032,358 common shares issued and outstanding. The Share
Consolidation, at the maximum ratio proposed, would reduce the
outstanding common shares to 4,701,078 common shares.
The Board of Directors believes that the
Share Consolidation is in the best interests of the Company and is
recommending that shareholders vote in favour of the Share
Consolidation in order to: (i) increase the individual common share
price to exceed the $0.05 TSX Venture Exchange minimum per share
price for certain financings; (ii) reduce the number and increase
the price of individual common shares making them more powerful
incentives for vendors of mineral properties in connection with a
potential property acquisition agreement; and (iii) increase the
individual common share price to a level which may meet investing
guidelines for certain institutional investors and investment
funds, as well as making changes in the price level of the common
shares less volatile on a percentage basis.
The bear market for junior companies
on the TSX Venture continues to persist, and access to the capital
required to fund mineral exploration has greatly diminished. The
Company must proactively position itself so that it may not only
ride out the storm, but also be well positioned to take full
advantage of any potential mergers and/or acquisitions, to build
shareholder value into the future. The Board of Directors believes
that mineral exploration companies that take similar measures will
improve their chances of surviving this bear market.
The share consolidation will not affect the
Option Agreement between Golden Hope and Uragold Bay Resources
(UBR: TSX/V).
The Share Consolidation is subject to both
the approval of the shareholders at the Special Meeting and that of
the TSX Venture Exchange. The Company will not be changing its name
in conjunction with the Share Consolidation.
Additional information regarding the Share
Consolidation will be available in the Company's information
circular. The information circular will be posted at
http://goldenhopemines.com/investors/agm2014/ or mailed to certain
shareholders in connection with the Special Shareholders Meeting
and will also be available on SEDAR at www.sedar.com
Golden Hope Mines Ltd.
Statements Regarding Forward-Looking Information
Information set forth in this news release by
Golden Hope Mines Limited
may contain forward-looking information
within the meaning of Canadian securities laws. Forward-looking
information includes statements that relate to future, not past,
events. In this context, forward-looking information often
addresses the Company's expected future business and financial
performance, and often contains words such as "anticipate",
"believe", "plan", "estimate", "expect" and "intend", statements
that an action or event "may", "might", "could", "should" or "will"
be taken or occur, or other similar expressions (including negative
and grammatical variations). Such information includes plans,
timing and expectations for updates of the Company's resource
estimate; expectations regarding the Company's planned exploration
activities and budget; the timing for receipt of drilling and assay
results; and plans for further exploration and drilling at
Bellechasse-Timmins and Champagne/VMS and other targets along the
Bellechasse Belt. Specifically
relating to possible mining of the Bellechasse-Timmins gold
deposit, the Company must obtain specific permits beyond the
Certificate of Authorization; may complete additional exploration
and development work; and obtain appropriate financing before
mining may begin. By their nature,
forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. Such factors include, among others,
the following risks: the risks associated with any outstanding
litigation; risks associated with exploration activities and
project development; timing of and unexpected events regarding the
receipt and interpretation of drilling and assay results; delays in
the preparation of resource estimate updates; the need for
additional financing; operational risks associated with mineral
exploration; fluctuations in gold and other commodity prices; title
matters; technical and permitting issues; environmental liability
claims; insurance matters; reliance on key personnel; the potential
for conflicts of interest among certain officers, directors or
promoters with certain other projects; the absence of dividends;
competition; dilution; the volatility of our common share price and
volume; the impact of taxation; and general economic conditions.
Forward-looking information is based on management's beliefs,
estimates and opinions on the date hereof and the Company
undertakes no obligation to update any forward-looking information
if these beliefs, estimates and opinions or other circumstances
should change. Investors are cautioned against attributing undue
certainty to forward-looking
information.
Any historical mineral
quantities set forth herein are, unless otherwise indicated, not
compliant with National Instrument 43-101.
About Golden Hope
Mines Limited:
Golden Hope Mines Limited is a
mineral exploration company that seeks to grow shareholder value
through the acquisition, exploration and development of potentially
large-scale gold and base metal projects suitable for underground
and/or open-pit mining. The company's focus is in southeastern
Quebec, Canada. The company's claim blocks lie within an area that
extends approximately 100 kilometres along the Appalachians of
southern Quebec from near Ste-Lucie-de-Beauregard to about 16
kilometres southwest of Beauceville. The Bellechasse-Timmins gold
deposit lies 5 kilometres southeast of St-Magloire within the
Bellechasse Belt an approximately 18 kilometre long mineralized
area. The Bellechasse-Timmins gold deposit includes the T1, T2A,
T2B, Ascot/Road gold zones, and the 88 Diorite. The company is also
looking to develop the Champagne zone, a partially explored base metal and gold deposit that
lies within the Company's Bellechasse Belt claims. A recently
completed VTEM survey may identify other similar targets along the
horizon. The company is also working to develop other
targets within its claim blocks including the FSG gold and base
metal target, Chute du Bras, the LG showing, Moose Cliff, and
Talon. For further information on Golden Hope Mines Limited please
visit www.goldenhopemines.com.
For further information:
Golden
Hope Mines Limited?
Frank
Candido?: President, Director?
Tel:
514-969-5530
fcandido@goldenhopemines.com
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