VANCOUVER, 06/07/13 -
Zone Resources Inc. (TSX VENTURE: ZNR) (FRANKFURT: 7ZR) (the "Company') reports that its Annual General and Special Meeting is to be held June 27, 2013. At the meeting, the Company will be asking the shareholders to consider, and if thought fit, approve a resolution that the issued and outstanding common shares of the Company be consolidated on the basis of one new common share for up to 10 old common shares.
As of the Record Date for the Meeting and currently, the Company has 68,334,035 issued and outstanding common shares. If the consolidation were conducted on a ten (10) for one (1) basis, the Company would have approximately 6,833,435 shares outstanding following the consolidation. The exact number of post-consolidated shares will vary depending on the treatment of fractional shares, which will occur when each shareholder's holdings in the Company are consolidated. Outstanding stock options and warrants will also be adjusted by the consolidation ratio and the respective exercise prices of outstanding stock options and warrants will be adjusted accordingly.
Management of the Company believes that further equity financing is required in order for the Company to fund its current working capital requirements and for future business purposes. It is management's opinion that the Company's existing issued and outstanding share capital is not conducive to completing such additional equity financing and that the consolidation is required in order to attract new equity investment in the Company.
Details of the consolidation are contained in the Company's information circular, which will be mailed to shareholders and will be filed on SEDAR (
www.sedar.com).
About Zone Resources Inc.
Zone Resources Inc. is a Canadian Iron ore exploration and development company with projects situated in the Labrador Trough of Quebec, Canada.
Cautionary note: This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Zone Resources Inc.
Archie Boyce, Director
(604) 683 5445
info@zone-resources.com
