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Karora Resources says share consolidation effective as the market opens on Friday

The mining group has also partially monetized its Orford Mining position for investment purposes

Karora Resources Inc. - Karora Resources says share consolidation effective as the market opens on Friday
Karora is focused on growing gold production and reducing costs at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations in Western Australia

Karora Resources Inc (TSE:KRR), formerly known as RNC Minerals Corp (TSE:RNX), announced that a previously announced share consolidation was effective as the markets opened on Friday, and that it had partially monetized its Orford Mining position for investment purposes.

In a statement, the mining group focused on becoming a high quality, gold producer in Western Australia, said the consolidation of the shares will come into effect at the start of trading on the basis of one post-consolidation share for four and a half pre-consolidation shares.

The company said prior to the consolidation, around 648,700,031 shares were issued and outstanding. Following the consolidation, 144,155,562 shares will be outstanding. Any fractional shares resulting from the consolidation will be rounded up to the next higher whole number, said the company.

READ: Karora Resources strikes deal to sell 28% interest in Quebec nickel project as it focuses efforts on gold

As a result of the consolidation, Karora Resources said outstanding warrants will be “proportionately adjusted” such that four and a half warrants are now exercisable for one post-consolidation share at an exercise price of $2.25 per share. Similar adjustments will be made to other convertible securities.

The consolidation has been approved by the Toronto Stock Exchange.

Sale of shares of Orford Mining

Meanwhile, the company said that it has agreed to sell, directly and through a wholly-owned subsidiary 11,251,456 shares of Orford Mining Corp (CVE: ORM) at a price of $0.09 per share for roughly $1,012,631. It currently owns 22,502,911 shares and warrants to purchase up to an additional 1,095,505 shares of Orford representing an approximate 23.6% interest in Orford on an undiluted basis and 24.5% on a partially diluted basis.

After the sale, the company will control 11,251,455 shares and warrants to purchase up to 1,095,505 shares, representing an 11.8% interest in Orford on an undiluted basis and 12.8% on a partially diluted basis. The company said it disposed of the Orford shares for “investment purposes only.”

2Q financial results on August 10

Karora's senior management will host a conference call and webcast on August 10 at 10 am ET to discuss the company's second quarter results. Investors from North America cay dial 1-888-231-8191, while local and international callers can dial 647-427-7450.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Quick facts: Karora Resources Inc.

Price: 3.55 CAD

TSX:KRR
Market: TSX
Market Cap: $511.75 m
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