June 9, 2016 – Oremex Silver Inc. (TSXV:OAG) (“Oremex” or the “Company”) is pleased to announce that it is proposing to consolidate its issued and outstanding common shares (the “Common Shares”) and to change the name of the Company from “Oremex Silver Inc.” to “Monarca Minerals Inc.”. Additional information relating to the proposed consolidation and name change is included in the management information circular of the Company dated May 17, 2016 for the annual general and special meeting of shareholders scheduled for July 7, 2016 (the “Meeting”) and which is available on the Company’s SEDAR profile at www.sedar.com.
As part of the Meeting, shareholders will be asked to approve a special resolution to amend the articles of the Company to consolidate the issued and outstanding Common Shares on the basis of one (1) post-consolidation Common Share for every seven (7) pre-consolidation Common Shares, or such other ratio as maybe required in order to comply with the requirements of the TSX Venture Exchange. Shareholders will also be asked to approve a special resolution to change the name of the Company from “Oremex Silver Inc.” to “Monarca Minerals Inc.”, or such other name as the board of directors may, in its sole discretion, determine to be appropriate.
There are currently 146,475,695 Common Shares issued and outstanding. Upon the consolidation becoming effective, it is expected there will be approximately 20,925,099 post-consolidation Common Shares in the capital of the Company issued and outstanding on a non-diluted basis.
The board of directors has concluded that the consolidation would be in the best interests of shareholders as it could lead to increased interest by a wider audience of potential investors and could better position the Corporation to obtain financing and pursue acquisition opportunities. Notwithstanding the foregoing, the board of directors may determine not to implement the consolidation and/or the name change at any time after the Meeting and after receipt of necessary regulatory approvals, but prior to the issuance of a certificate of amendment, without further action on the part of the shareholders.
The consolidation and name change are both subject to shareholder and regulatory approval, including the approval of the TSX Venture Exchange.
About Oremex Silver Inc.
Oremex is a Canadian company focusing on the exploration and development of silver projects along a highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including a mineral resource of 27.8 million ounces of silver (19.8 million tonnes at 45.0 g/t Ag) at its Tejamen deposit.
For further information, please contact:
Interim Chief Executive Officer
Oremex Silver Inc.
Cautionary Note Regarding Forward-Looking Statements
Forward-Looking Statements: The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.