Nevada Organic Phosphate (CSE:NOP) will seek shareholder approval to consolidate up to three existing shares into one.
Shareholders will vote on the proposal at a meeting scheduled for 30 December. The special resolution requires approval from at least two-thirds of votes cast.
Nevada Organic has approximately 180.05 million shares on issue. A three-for-one consolidation would reduce that figure to about 60 million, with fractional shares rounded up.
Options would be adjusted from approximately 16.91–5.64 million and warrants from 54.13–18.04 million. The fully diluted share count would fall from 251.09–83.70 million.
If shareholders approve the resolution, the board will retain discretion over the ratio, timing, and whether to proceed. The consolidation will also require regulatory approval.
Nevada Organic says the restructuring could provide greater corporate flexibility and support its efforts to increase visibility in US capital markets. However, the company cautions that it may not improve trading liquidity or valuation.
The proposal comes as drilling continues at the Murdock Mountain Phosphate Project in Nevada, US, with assays pending and P&E Mining Consultants preparing a maiden mineral resource estimate.
CEO Robin Dow says drilling and core logging continue to support the company’s interpretation of the Upper Phosphate zone.
“While assay results remain pending for several drill holes and a mineral resource has not yet been established, we are encouraged by the consistency observed during drilling and core logging,” Dow says.
Nevada Organic reports holding approximately US$2.5 million ($3.84 million) in cash and says it is funded to complete the current exploration phase.
The update follows drilling that extended the confirmed target formation beyond 4.5km.
Nevada Organic Phosphate is a Canadian junior explorer advancing its wholly owned Murdock Mountain sedimentary phosphate project in northeastern Nevada.
Write to France Pinzon at Mining.com.au
Main image: Nevada Organic Phosphate
