TORONTO, ONTARIO -- (Marketwire) -- 08/27/10 -- Virgin Metals Inc. (TSX VENTURE: VGM) today announced that its shareholders approved a resolution authorizing the consolidation of its common shares (each, a 'Common Share') on a one (1) for five (5) basis (the 'Consolidation') at its Annual and Special Shareholders Meeting that was held on Thursday August 26, 2010. An aggregate of 29,843,800 shares were represented at the meeting either in person or by proxy, representing approximately 24.4% of the issued and outstanding common shares of the Company, with 94% of the votes being cast in favour of the Consolidation resolution.
For each five common shares currently held by a Virgin shareholder, the shareholder will receive one common share after the Consolidation takes effect. The completion of the Consolidation is subject to the approval of the TSX Venture Exchange (TSX-V). Materials are being submitted to the TSX-V requesting such approval and a further announcement will be made once such approval is obtained. 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. The Consolidation will merely proportionally reduce the number of Common Shares held by shareholders. 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.
Following receipt of TSX-V approval, the Company will complete the necessary corporate filings in order to give effect to the Consolidation. Once completed, a letter of transmittal will be sent by mail to shareholders advising them that the Consolidation has taken effect and instructing them to surrender the certificates evidencing their Common Shares for replacement certificates representing the number of Common Shares to which they are entitled as a result of the Consolidation. Until surrendered, each certificate formerly representing Common Shares will be deemed for all purposes to represent the number of Common Shares to which the holder thereof is entitled as a result of the completion of the Consolidation.
It should be noted that the name of the Company is not changing, nor its trading symbol.
In addition to the Consolidation, shareholders approved all other matters which were submitted with the proxy materials for approval at the AGM, including the election of the Board of Directors, the requisite annual approval of the Stock Option Plan for 2010 and the appointment of MSCM LLP as auditors of the Company.
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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Virgin Metals Inc.
Lucas Ewart
(416) 488-2590
www.virginmetals.com
