Bravo Gold Corp (CVE:BVG) said Monday that a share consolidation was approved at the annual shareholder meeting last week, and gave an exploration update for 2012.
Approval was given for the consolidation of the issued common shares
of the company on a basis of one post-consolidation common share for
every 10 pre-consolidation common shares.
The company said it believes it will benefit from greater investor
interest as a result of the share consolidation, as well as improved
trading liquidity, and an ability to raise additional capital at a
higher price per share.
The change in the number of issued and outstanding shares that will
result from the move will "cause no change in the capital attributable
to the common shares and will not materially affect any shareholder's
percentage ownership in the company", Bravo Gold said.
Ownership, however, will be represented by a smaller number of shares.
As of today, the company has a total of around 215.4 million shares
issued and outstanding, and after the consolidation of shares is
completed, it is expected to have around 21.5 million issued and
The completion of the share consolidation is subject to the approval of the TSX Venture Exchange.
Separately, Ken Thorsen has retired from the company's board at the
annual general meeting, and Fred Sveinson has been elected as a new
The company also gave a 2012 exploration update for its Homestake
Ridge and Kinskuch properties located in northwestern British Columbia.
The program will focus on the drill delineation of the newly discovered
South Reef deposit at Homestake Ridge and follow-up drilling of a
potential mineral deposit at Kinskuch.
The campaign is expected to include additional exploration drilling,
ground geophysics and further evaluation of several other "encouraging"
exploration targets, Bravo Gold added.
A defined resource at South Reef and possibly at Kinskuch, plus any
new discoveries will be accretive to the NI 43-101 compliant resources
at the two deposits already delineated by Bravo at the Homestake Ridge
The planned holes at Homestake Ridge this year will offset three
holes from the 2011 program that tested a 75 metre strike-length of the
mineralized trend to depths of 260 metres and intersected more than 30
g/t gold in each hole, including a 3.1 metre interval averaging 30.8g/t
gold and 3.3g/t silver.
Mineralization at South Reef is open at depth and along the full
strike-length of the target horizon, which is equal to the cumulative
strike-length of the previously delineated Main Homestake and Homestake
Silver deposits, the company said.
Combined, the Main Homestake and Homestake Silver deposits contain a
current NI 43-101 compliant indicated resource, at a 3.0 g/t gold
equivalent cut-off, of 191,000 ounces of gold and 1,350,000 ounces
silver plus an inferred resource of 530,000 ounces gold and 13,470,000
Meanwhile, exploration on the Kinskuch project this year will focus
on offset drilling of the silver-rich, polymetallic VMS-style
mineralization intersected by Bravo in 2011 at the Illiance River trend
located in the eastern part of the property.
The Illiance River trend is a five kilometre strike length of
strongly altered volcanic stratigraphy. Initial drilling will target a
700 metre strike length of this trend where 2011 drilling returned a 2.8
metre interval averaging 318g/t silver, 0.4g/t gold, 2.2% lead and 6.5%
zinc from drill hole KN11-02.