Hillgrove announces share consolidation
KALGOORLIE (miningweekly.com) – Copper miner Hillgrove Resources on Tuesday announced a one-for-eight share consolidation as part of its capital management initiatives.
The ASX-listed company currently has 1.18-billion shares on issue, compared with a market capitalisation of A$95-million.
Hillgrove told shareholders that this was disproportionate to the number of shares on issue for other similarly-sized companies in the Australian resources sector, and that a consolidation of the company’s share capital would result in a more appropriate and effective capital structure.
The proposed share consolidation would reduce the number of shares on issue to around 148-million.
The consolidation would be subject to shareholder approval.
Meanwhile, Hillgrove said the company would implement a share sale facility following the consolidation, to provide eligible shareholders with an opportunity to sell their unmarketable parcels without incurring any brokerage cost.
It was thought that the sale facility would also reduce the expense to the company of maintaining over 1 500 shareholders with unmarketable parcels.
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