Toronto, Canada-based explorer Copper Lake Resources (TSX-V:CPL) has mapped out plans to undertake a share consolidation of up to 20:1.
Copper Lake, which has a market capitalisation of C$2.7 million ($3 million), believes the consolidation will enhance the company’s marketability and better position it to raise funds necessary to execute its business plan.
CEO Terry MacDonald told Mining.com.au in March that with a small amount of capital (less than $5 million), Copper Lake believes it could capitalise on existing data and make significant discoveries at its Marshall Lake volcanogenic massive sulfide (VMS) copper-zinc-silver-gold project in Ontario.
A company will undertake a share consolidation to reduce the number of shares it has on issue and increase the value of its shares without impacting shareholders’ percentage ownership or value of their holding.
The explorer currently has around 270.5 million on issues and is trading at C$0.01.
Copper Lake will seek shareholder approval for the consolidation at its annual general meeting on 12 June.
If approved, the company will undertake the share consolidation within 12 months at a ratio to be determined by the board, up to a maximum of 20:1.
Copper Lake is also issuing 250,000 shares to Aroland First Nation and 250,000 shares to Animbiigoo Zaagi’igan Anishinaabek First Nation. The share issue is related to an exploration agreement struck on 27 February for the Marshall Lake project.
Copper Lake holds a 81.14% interest in the Marshall Lake project and a 69.79% interest in the 7,728-hectare Norton Lake nickel-copper-cobalt-palladium and platinum project, with both projects located in Ontario.
Write to Angela East at Mining.com.au
Images: Copper Lake Resources
