|
|
Adanac Molybdenum Corporation ("Adanac" or the "Company") (TSX:AUA - News) is pleased to update current
and prospective shareholders with the following new share information.
As outlined in the Information Letter
regarding Adanac's Plan of Compromise and
Arrangement, Adanac expects to consolidate its
issued and outstanding common shares at a rate of 150:1 and then issue
approximately 24,698,667 post-consolidation common shares to creditors upon
exit from CCAA. Existing shareholders will be provided with further
instructions to exchange their current share certificates for new ones when
the Plan is implemented.
Adanac's new shares are expected to settle
electronically, in Canadian dollars, through CDS Clearing and Depository
Services Inc. ("CDS"). Adanac will not
apply for listing of the new shares on any stock exchange in the United
States. As a result, the Company may no longer be eligible for book-entry and
depository services of The Depository Trust & Clearing Corporation
("DTC"). If electronic settlement of transactions in the new shares
is no longer available through DTC, United States holders will need to
arrange with the brokerage firm holding their shares to settle the new shares
via CDS, or will need to deposit physical certificates in a brokerage firm
that will settle the new shares in Canadian dollars.
Information and documents relating to Adanac's CCAA proceedings, including the Sanction Order
and the Plan, are available on the website of Adanac's
Court-appointed Monitor, KPMG Inc.: www.kpmg.ca/adanac.
About Adanac
Molybdenum Corporation
Adanac Molybdenum Corporation owns the Ruby
Creek Project, which is located in northwest British Columbia. Adanac has advanced this primary molybdenum property
through feasibility studies, a production decision and an updated resource
estimate. Upon emergence from protection from its creditors under the CCAA, Adanac will have minimal debt and will be positioned to
resume its efforts to develop the Ruby Creek Project.
Cautionary Notice: This news release
contains "forward-looking information" within the meaning of
applicable Canadian securities legislation and United States securities laws
including the implementation of the Plan. Generally, forward-looking
information can be identified by the use of forward-looking terminology such
as "plans", "expects", or "does not expect",
"is expected", "budget", "scheduled",
"estimates", "forecasts", "intends",
"anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or statements
that certain actions, events or results "may", "could",
"would", "might", or "will be taken",
"occur", or "be achieved". Forward-looking information is
based on the opinions and estimates of management at the date the information
is made, and is based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward looking
information. Many of these assumptions are based on factors and events that
are not within the control of the Company and there is no assurance they will
prove to be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward looking information
include risk factors discussed in the Annual Information Form for the year
ended April 30, 2010 for the Company available at www.sedar.com.
Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors that
cause actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. The Company undertakes
no obligation to update forward-looking information if circumstances or management's
estimates or opinions should change except as required by applicable
securities laws. The reader is cautioned not to place undue reliance on
forward-looking information.
These securities have not been and will
not be registered under the United States Securities Act of 1933, as amended,
or any state securities law, and may not be offered or sold in the United
States unless an exemption from such registration is available.
|
|