VANCOUVER, British Columbia, July 6, 2012 (GLOBE NEWSWIRE) -- STRONGHOLD METALS INC. ("Stronghold" or the "Company") (Z: TSX-V, OTCQX SDMTF, Frankfurt E9X)
Stronghold announces that the Board of Directors has approved a share consolidation (the "Consolidation") based on a ratio of five (5) old shares for every one (1) new share. The Board of Directors has determined that in light of current market conditions, it is necessary for the Company to effect the Consolidation in order to access equity financing. The Company has been unsuccessful in its efforts to complete a financing with its current capital structure. The Company has been granted a waiver by the TSX Venture Exchange of the requirement to obtain shareholder approval for the Consolidation and therefore the Company will immediately file the required documentation with the necessary corporate and regulatory authorities to give effect to the Consolidation. The Company confirms that it has consulted with and received support for the Consolidation from all its major shareholders.
In conjunction with the Consolidation, Stronghold intends to change its name to "Eagle Mountain Gold Corp.", or such other name as may be accepted by the BC Registrar of Companies (the "Name Change"). The proposed name change is designed to emphasize the Company's focus on the exploration and development of the Eagle Mountain gold project in Guyana.
Pursuant to the Consolidation, the Company's issued and outstanding share capital of 73,836,395 common shares without par value will be consolidated into 14,767,279 common shares without par value, every 5 existing common shares being consolidated into 1 new common share, with all resulting fractional shares being rounded down to the nearest whole number.
The Consolidation and Name Change are subject to acceptance by the TSX Venture Exchange.
On behalf of The Board of Directors of Stronghold Metals Inc.
"Ioannis (Yannis) Tsitos"
President, CEO & Director
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.
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