Element 79 Gold Corp. (TSXV: ELE) announced the effective date of the previously-announced share consolidation (the “Share Consolidation”) will be February 22, 2021 (the “Effective Date”).
The Company has determined that the ratio of the Share Consolidation will be 1 post-consolidation common share for every 16 pre-Consolidation common shares held by shareholders on the Effective Date (the “Consolidation Ratio”). On February 22, 2021, the books of the Company will be closed and no further transfers of common shares in the capital of the Company will be registered until the completion of the consolidation.
The Share Consolidation is intended to result in increased trading liquidity and decreased volatility. Currently, Element 79 has a large number of issued and outstanding shares which have limited liquidity. This is due to the few and widespread holders of shares and limited trading volume of the common shares. In order to increase trading liquidity and reduce volatility, Element 79 believes that reducing the overall number of issued and outstanding common shares is an appropriate measure.
Subject to the approval of the TSX Venture Exchange (the “Exchange”), Element 79’s common shares will commence trading on a post-consolidation basis shortly after the Effective Date. After the completion of the share consolidation, the pre-consolidation common shares will no longer be traded on the Exchange. Further details of the Share Consolidation can be found in the Company’s news release dated November 30, 2020.
Element 79 is a gold exploration company focused on the advancement of the Bolongo project. Located in Nunavut, Canada, Bolongo is a high-grade gold property comprising over 70,000 hectares. In February 2020, Element 79 entered into an exclusive option to acquire a 100% undivided interest in the Bolongo project.