VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 13, 2013) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF)(PINKSHEETS:AUNFF) is pleased to announce that is proposing a consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation common share for every eight (8) pre-consolidation common shares.
"After carefully considering Aurcana's growth and strategic objectives, we believe that a consolidation could provide significant benefits to the company and its shareholders. This change may open the door to a large base of potential new investors and will qualify the company for a possible dual listing on a U.S. or other major stock exchange. This is an important step in Aurcana's strategic efforts to become a senior silver producer," said Mr. Lenic Rodriguez, President & CEO.
A share consolidation of the company's issued and outstanding common shares is in line with Aurcana's strategic and growth objectives to become a major senior silver producer.
This action has no impact on the company's value or future cash flows.
While there are no guarantees, there may be important benefits that the proposed consolidation could provide, including:
- A higher post consolidation price per share could make Aurcana eligible for investment by a large base of potential new investors, who cannot otherwise invest below a minimum per share value.
- A larger investors pool may also result in a possible increase in trading volumes.
- A higher post consolidation price per share could also improve the company's ability to pursue a dual listing on a major exchange and finance in the market, if warranted in the future.
- An increase in the share price in absolute dollar terms may improve the market perception of Aurcana's stock.
- The proposed consolidation could also align the company's number of outstanding shares relative to its peers.
If approved, the Consolidation would reduce the Company's 467,157,647 issued and outstanding Common Shares to approximately 58,394,706 Common Shares. The exercise or conversion price of outstanding stock options and warrants would be proportionately adjusted based upon the same consolidation ratio. The company name will remain unchanged after the consolidation.
The proposed Consolidation is subject to the approval of the TSX Venture Exchange and Aurcana's shareholders.
Full details regarding the proposed consolidation will be included in the information circular to be mailed to all Aurcana shareholders of record on February 26, 2013 and posted on www.SEDAR.com in connection with the Special Meeting of Shareholders, which is scheduled to be held on Thursday, March 28, 2013.
About Aurcana Corporation
Aurcana Corporation is an emerging senior silver producer with two operating mines located in Mexico and Texas, United States.
La Negra Mine, Mexico, current installed capacity is 2,500tpd. In order to allow for an increase in future production, La Negra mine is now working to increase mill capacity to 3,000tpd by the end of Q1, 2013.
La Negra has a NI 43-101 M&I resource of 115.1 million (mm) oz silver, 1,418.7 mm lbs zinc, 539.5 mm lbs lead and 269.5 mm lbs copper and an Inferred Resource of 56.5 mm oz silver, 657.4 mm lbs zinc, 263.0 mm lbs. lead and 132.3 mm lbs copper.
Commissioning and mill testing of the Shafter Mine in Texas commenced on April 1, 2012 and commencement of commercial production was achieved in December 2012. The Shafter Silver Mine, according to the data from the published feasibility study, is expected to produce 3.8 million ounces of silver over 12 months once ramp up to its 1,500tpd capacity is completed.
Shafter has a NI 43-101 M&I Resource of 23.9 mm oz of silver and an Inferred Resource of 22.8 mm oz of silver. (All National Instrument 43-101 technical reserve reports can be found on SEDAR at: www.sedar.com). Aurcana continues to focus on its future growth.
The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President & CEO
The scientific and technical information contained in this news release regarding the Shafter Silver Mine has been reviewed by Dr. Sadek El-Alfy, PhD, Vice President Operations, a Qualified Person ("QP") according to the definitions of NI 43-101.
Baltazar Solano-Rico and Betty Gibbs have reviewed the technical information reported in the National Instrument 43-101 technical reports regarding the La Negra Silver Mine. All National Instrument 43-101 technical reports can be found on the Company's website at www.aurcana.com or on SEDAR at www.sedar.com.
Baltazar Solano-Rico (M.Sc., Geol. Eng.) and Mrs. Betty Gibbs (E.M., MSc.) of Behre Dolbear are the independent Qualified Persons pursuant to NI 43-101 for the Company. Mr. Nils von Fersen (PGeo), Vice President, Exploration is also certified Qualified Person of the company. The technical contents of this release have also been reviewed by Nils von Fersen for QP technical disclosures.
This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration results, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf. Accordingly, readers should not place undue reliance on forward-looking statements.
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.