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Chibougamau Independent Mines Inc. Announces Proposed Share Consolidation and $1 Million Non-Brokered Private Placement
ROUYN-NORANDA, QUÉBEC--(Marketwired - May 13, 2016) - Chibougamau Independent Mines Inc. (TSX VENTURE:CBG)(STUT:CLL) announces that it has received conditional
About this update from Chibougamau Independent Mines, Inc.
[{"type":"text","content":"ROUYN-NORANDA, QUÉBEC--(Marketwired - May 13, 2016) - Chibougamau Independent Mines Inc. (TSX VENTURE:CBG)(STUT:CLL) announces that it has received conditional approval from the TSX Venture Exchange to consolidate its issued and outstanding common shares on the basis of one share for every two shares issued and outstanding, subject to shareholder approval. The consolidation of CIM's common shares will be voted on by CIM's shareholders at an annual and special meeting of shareholders to be held on May 31, 2016. Details regarding the proposed share consolidation are available in CIM's management information circular prepared in connection with the shareholders' meeting, a copy of which has been filed on SEDAR at www.sedar.com. The Board of Directors believes that the proposed share consolidation will better position CIM to raise equity financing in light of the continuing difficult market conditions that exist for junior resource issuers. If shareholders approve the share consolidation, CIM will announce its effective date in a subsequent press release. CIM's common shares will continue to trade under the symbol \"CBG\" and CIM's name will not change. If the share consolidation is approved, CIM will have 16,238,624 issued and outstanding common shares, compared to 32,477,248 shares currently outstanding. No fractional shares will be issued and all fractional shares resulting from the consolidation will be rounded down to the nearest whole number. If shareholders approve the share consolidation, CIM will mail a letter of transmittal to its registered shareholders, who will be required to exchange their current share certificates for new share certificates. Shareholders who hold their shares through a securities broker or dealer, bank or trust company will not be required to take any measures. The share consolidation is subject to final approval from the TSX Venture Exchange. Non-Brokered Private Placement CIM also announces that following the share consolidation, it will effect a non-brokered private placement in a maximum amount of $1 million by issuing a maximum of 15 million units at a price of $0.05 per unit for maximum proceeds of $750,000 and 5 million \"flow-through\" shares at a price of $0.05 per share for maximum proceeds of $250,000, all on a post-consolidation basis. Each of the units will consist of one common share in...