Noricum Gold Limited, has told DirectorsTalk that it intends to change its name to Georgian Mining Corporation (EPIC: GEO). Noricum is also proposing to consolidate the existing ordinary share capital of the Company.
Background to and reasons for the Change of Name and the Consolidation
2016 has been a very exciting year for the Company with significant progress made at its 50% owned Bolnisi copper and gold concessions in Georgia. Results of the Company’s exploration activities during the period demonstrate that the Bolnisi project has the potential to host several significant economic mineral deposits which could materially enlarge the scale of a future mining operation. The Company will now focus on the rapid development of these mineral assets with the ultimate goal of becoming a European copper and gold producer. Accordingly, in order to reflect the prospects for the Company and to help reinvigorate its status in the capital markets, the Board is proposing a change of name and a share consolidation.
The Company currently has 4,792,485,350 ordinary shares of no par value in issue (‘Existing Ordinary Shares’). The Board considers that this number of shares is considerably larger than that of similar sized companies on AIM and other Recognised Investment Exchanges and that this is having a negative effect on investor perception of the Company.
Following consultation with a number of the Company’s Shareholders, a consolidation is being proposed in order to reduce the number of Existing Ordinary Shares that are in issue to a level more in line with comparable AIM quoted companies. The Directors believe that a consolidation will improve the marketability of Existing Ordinary Shares to a wider range of investors, including institutional investors in the UK, Europe and North America.
The Company is also proposing to change its name to “Georgian Mining Corporation”. The Board believes that this name better reflects the Company’s focus of operations.