Copper Lake Resources (TSX-V: CPL), a Toronto-based explorer with a market capitalization of C$2.7 million, has announced plans for a share consolidation of up to 20:1. The company believes this consolidation will improve its marketability and better position it to secure funding for its business plan, particularly for its Marshall Lake volcanogenic massive sulfide (VMS) copper-zinc-silver-gold project in Ontario. Currently, Copper Lake has approximately 270.5 million shares outstanding and is trading at C$0.01.
The share consolidation requires shareholder approval, which Copper Lake will seek at its annual general meeting on June 12. If approved, the board will determine the exact consolidation ratio, up to the maximum of 20:1, within the following 12 months. A share consolidation reduces the number of outstanding shares, theoretically increasing the value of each remaining share without affecting shareholders’ overall equity percentage.
In addition to the consolidation plan, Copper Lake is issuing 250,000 shares each to Aroland First Nation and Animbiigoo Zaagi’igan Anishinaabek First Nation, related to an exploration agreement finalized on February 27 for the Marshall Lake project. Copper Lake holds an 81.14% interest in the Marshall Lake project and a 69.79% interest in the 7,728-hectare Norton Lake nickel-copper-cobalt-palladium and platinum project, both located in Ontario.
