TORONTO, ONTARIO -- (Marketwire) -- 07/08/10 -- Virgin Metals Inc. (TSX VENTURE: VGM) today announced that it has set the date for its next Annual and Special Shareholders Meeting as Thursday August 26, 2010 (the 'Meeting'). At that meeting the company will be seeking shareholder approval for a resolution authorizing the consolidation of its common shares on a one (1) for five (5) basis (the 'Consolidation'). It will be proposed, that for each five common shares currently held by a Virgin shareholder, the shareholder will receive one common share. Completion of the Consolidation will be subject to the approval of Virgin Shareholders by special resolution at the Meeting, and the approval of the TSX Venture Exchange. The Consolidation will not materially affect the percentage ownership in the Company of shareholders even though such ownership will be represented by a smaller number of Common Shares. As at the date hereof, there are an aggregate of 122,280,182 Common Shares issued and outstanding. It is expected, that upon completion of the Consolidation there will be an aggregate of approximately 24,456,036 common shares issued and outstanding.
In order to ensure that all current shareholders are accorded appropriate consideration in the newly structured company, the Board of Directors is currently considering undertaking a financing through a rights offering immediately following the Consolidation.
The company is also pleased to announce that it is entering into a definitive agreement with Mr. Chris Frostad to assume the role of President and Chief Executive Officer. The agreement is subject to TSX Venture approval.
Mr. Frostad brings to the company nearly 30 years of experience in the development and building of high growth, early stage, public and private companies. In addition to his duties at Virgin, he is currently the President and Chief Executive Officer of Purepoint Uranium Group Inc. Mr. Frostad is a Chartered Accountant and holds a Bachelor of Business Administration, Honours from Wilfrid Laurier University.
Virgin last week accepted the resignations of Mr. Lucas Ewart and Mr. Chris Carmichael as Chief Executive Officer and Chief Financial Offer respectively. Mr. Ewart remains as a Director and Chairman of the Board. Mr. Frostad is currently working closely with the Board of Directors and it is anticipated that he and his team will assume their official roles upon the successful completion of the Annual General Meeting.
About Virgin Metals
Virgin Metals is a junior exploration and development company; its projects include two copper-molybdenum porphyry properties in Sonora, northern Mexico. One of these, Los Verdes, has been the subject of a pre-feasibility study while the other, Cuatro Hermanos, has been the focus of an intense exploration effort.
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Contacts:
Virgin Metals Inc.
Lucas Ewart
(416) 488-2590
www.virginmetals.com
