February 10, 2020 – TheNewswire – Timmins, Ontario – Melkior Resources Inc. (“Melkior” or the “Company”) (TSXV:MKR) (OTC:MKRIF) announces that its board of directors unanimously approved a consolidation of the Company’s share capital on the basis of one new common share for every ten old shares.
The Company’s present issued and outstanding capital of 193,657,586 common shares will be reduced to approximately 19,365,759 common shares after the proposed consolidation. The Company’s name and trading symbol will remain unchanged.
The proposed consolidation is to facilitate future equity financings and acquisitions. No fractional shares will be issued pursuant to the consolidation. Any fractional shares will be rounded to the nearest whole number of common shares.
The consolidation is subject to TSX Venture Exchange approval. Once Melkior has received the required approvals, registered shareholders of the Company will receive a transmittal letter from Computershare Investor Services Inc., the Company’s registrar and transfer agent, with instructions on how to exchange their pre-consolidated shares for post-consolidated shares.
2020 Exploration Plan
The updated structure will allow management to seek financing to ensure our 2020 work program goals are met and investors have potential catalysts through-out the entire year. The plans are as follows:
Winter/Spring 2020 programs:
1. Carscallen Project (Timmins):
a) Following the November 2019 drilling success (23.5g/t gold over 8 meters with .036% copper over 81 meters), the Company will commence a 1,800-meter drill program in early March 2020.
b) The first two drill holes are planned to confirm the current interpretation, expand on the strike, and investigate the copper intercepts. The third drill hole is planned to test the conductive zone to the southwest, which was identified by the Mise-a-la-Masse survey. Please refer to the January 23, 2020 release for further detail on the planned drill locations and targets.
c) With success from the March drill campaign, the Company will plan additional drilling throughout 2020 to continue to build upon the mineralized gold-bearing system and potential copper.
2. White Lake Project (Hemlo):
a) A maiden drill program of approximately 1,200 meters is being planned to test anomalies identified in the Jan 2019 VTEM and follow-up on strong gold occurrences (>1,000g/t, 19.2g/t, and 82.3g/t (2018 Sample)).
Summer 2020 program:
3. Maseres Project (Urban-Barry):
a) A reassessment of the property data was performed by SL Exploration, identifying 7 Targets of focus for 2020.
b) A refined soil and boulder sampling strategy has been developed to investigate the distinct targets along the 12KM conductive trend.
Management Discussion:
“This is not a decision we have taken lightly, and with management having a large stake in the Company, we are impacted alongside all shareholders. We believe the only way to create shareholder value is to continue to work and create catalysts for investors. To execute on our 2020 exploration plan, the Company requires further funding which is unavailable under the current share structure. The Company’s last consolidation was in 1995, and we are proud to have made it that long without requiring a consolidation, especially with the poor market conditions since 2012. We are hopeful that with success of the current drill program we are able to raise funds at a higher valuation to limit the dilution to legacy shareholders. We greatly appreciate our loyal shareholder base and look forward to their continued support.”
Qualified Person
All technical information in this press release has been reviewed and approved by Peter Caldbick, P.Geo. Mr. Caldbick is a consultant for Melkior and a Qualified Person for the purposes of National Instrument 43-101.
ON BEHALF OF THE BOARD
Keith James Deluce, CEO
For more information, please contact:
Melkior Resources Inc.
E-mail: [email protected]
Tel: 705-267-4000