Mengold Resources Inc.

Mengold Resources Inc.

June 17, 2010 14:48 ET

Mengold Announces Proposed Share Consolidation and Name Change

MONTREAL, QUEBEC--(Marketwire - June 17, 2010) - Mengold Resources Inc. ("Mengold" or the "Company") (TSX VENTURE:MNI) announces that it proposes to consolidate the issued and outstanding share capital of the Company such that every eight (8) existing shares will be consolidated into one (1) post-consolidation share (the "Consolidation Ratio").

The Company currently has 62,536,088 issued and outstanding common shares. The Company will have approximately 7,817,011 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 similarly be adjusted by the Consolidation Ratio.

In conjunction with the contemplated share consolidation, the Company will change its name to MGold Resources Inc. The company does not anticipate changing its trading symbol in connection with the share consolidation.

The proposed share consolidation and name change must be approved by at least two-thirds of the votes cast by the shareholders at the special meeting of shareholders to be held on July 9, 2010. Details of the proposed share consolidation and name change are set forth in the Company's management information circular which was mailed to shareholders on June 15, 2010.

The share consolidation and name change are also subject to the TSX Venture Exchange's approval.

The board of directors believes that consolidating the Company's issued and outstanding share capital is in the best interests of the Company. It is in the opinion of the board of directors that the share consolidation will improve the ability of the Company to attract additional equity financing.

Mengold Resources Inc. is engaged in mineral exploration for precious and base metals. The Company holds the Burchell Lake and Goldcreek properties, both prospective for gold, copper, zinc and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 62,536,088 common shares outstanding.

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Neither 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.

Contact Information

  • In Canada:
    Mengold Resources Inc.
    Joel Scodnick, President and Chief Executive Officer
    (705) 522.4439
    (705) 522.8694 (FAX)
    Mengold Resources Inc.
    Douglas G. Reeson
    Chief Financial Officer and Director
    (416) 533.0323
    (416) 533.2890 (FAX)
    In Europe:
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director (FAX)