Vancouver, Canada, May 20, 2014, Sonoro Metals Corp., (“Sonoro” or the “Company”) (TSXV: SMO), a precious metals exploration and development company, today announced that it has proposed a consolidation of the common shares of the Company (the “Common Shares“). The share consolidation proposal would authorize the Board of Directors of Sonoro to consolidate the Common Shares on the basis of two (2) pre-consolidation shares for one (1) post-consolidation share (the “Consolidation“). There will be no name change in conjunction with the Consolidation.
Management and the Board of Directors believe that approval of the Consolidation is in the best interests of the Company and its shareholders. Management believes that a successful completion of the Consolidation would allow the Company important flexibility to amend its capital structure and is imperative in order for the Company to complete future financings. The Consolidation will not change a shareholder’s proportionate ownership in the Company or the rights of holders of Common Shares. Each Common Share outstanding after the Consolidation will be entitled to one vote and will be fully paid and non-assessable.
Under the terms of the proposed Consolidation, no fractional Common Shares will be issued as a result of the Consolidation as any fractional shares created as a result of the Consolidation will be rounded up or down to the nearest whole number. There are currently 21,241,453 Common Shares issued and outstanding. Following the Consolidation, there will be approximately 10,620,726 Common Shares issued and outstanding, subject to treatment of fractional post-Consolidation Common Shares.
The Consolidation is subject to approval by the TSX Venture Exchange and the shareholders of the Company. The proposal will be presented to the shareholders of the Company at the Annual General Meeting of the Company to be held on June 19, 2014.
On behalf of the Board of SONORO METALS CORP.
Per: “Kenneth MacLeod”
President & CEO
About Sonoro Metals Corp.
Sonoro Metals Corp. is a precious metals exploration and development company with a portfolio of exploration-stage properties located in the Mexican state of Sonora, one of the most productive mining states in Mexico. Sonoro is focused on becoming the premier junior exploration and development company operating in this prolific gold-silver mineralized geological environment. Sonoro has a skilled exploration team to advance its projects to the development stage.
Forward-Looking Statement Cautions:
This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, relating to, among other things, preliminary plans for a consolidation of the Company’s Common Shares. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the possibility that the TSX Venture Exchange or the Company’s shareholders will not approve the proposed share consolidation, and that the Company may not be able to raise sufficient additional capital to continue its business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.