Diamond drilling
of the DS Copper-Gold property is completed,
for a total of approximately 300 meters in three drill holes . Selected core
from the drill program has been split and submitted for assay. The drill target
of the recently completed program is a large coincident Magnetic and I.P.
anomaly located to the north of the DS Pit zone. Float observed in the vicinity
of the drill site displays similar alteration characteristics to the rocks
found at the DS Pit, where previous drilling by the company in 2010 resulted in
a new discovery of copper-gold mineralization. Assay results will be announced
when available.
An initial
ground-based reconnaissance program has been completed at the Arrowsmith Copper-Gold prospect. Selected
rock samples from the property have been submitted for assay, results of which
will be announced when available. The Arrowsmith property covers four distinct
historical showings which are under single ownership for the first time.
Previous operators were hindered by their inability to bring these showings
together under a single entity.
The Company has
entered into an Amending Agreement with ABI Resources Ltd. (“ABI”), with whom
the Company entered into a farm-in agreement on April 15, 2007. Under the terms
of the original agreement, the Company drilled a gas well (New Shoshoni Sunrise
16-24-79-17 W6M) in the Dawson Creek area of BC. At the time, the Company chose
not to flow-test the well due to problems encountered in well completion. Under
the Amending Agreement, ABI has agreed to provide all required capital and its
expertise to flow-test this well. In consideration , the Company has granted
ABI an increase in the gross overriding royalty from production, to 30% from
the previously agreed to 15% payable during the pay-back period. ABI retains
the right to convert to a 35% participating interest in the well as originally
agreed.
Management of the Company is of the opinion that
in order to attract potential new business opportunities, the Company may
require flexibility in its capital structure. As a result, the Company will
table an ordinary resolution proposing a consolidation of the issued and
outstanding common shares of the company before the shareholders at the annual
and special meeting of shareholders to be held on October 12, 2011.
Shareholders of record as of the close of business on Aug. 6, 2011, will be
entitled to vote on the resolutions put forth at this meeting.
The Company is proposing a share consolidation of
its outstanding share capital with a view to increasing its flexibility with
respect to potential business transactions
on the basis of: i) 1 new share for 2 old shares; ii) 1 new share for 3
old shares; iii) 1 new share for 4 old shares; iv) 1 new share for 5 old
shares, to be determined by the Board of Directors (“the Board”).
The Company currently has an unlimited number of
Common Shares authorized for issuance. As at record date for the meeting,
August 6, 2011, the Company had 100,535,047 common shares issued and
outstanding. On the basis of: i) 1 new share for 2 old shares, the post
consolidation number of shares outstanding will be approximately 50,267,524
common shares; ii) on the basis 1 new share for 3 old shares, the post
consolidation number of shares outstanding will be approximately 33,511,682
common shares; iii) on the basis of 1 new share for 4 old shares, the post
consolidation number of shares outstanding will be approximately 25,133.762
common shares; iv) on the basis of 1 new share for 5 old shares, the post
consolidation number of shares outstanding will be approximately 20,107,009
common shares.
The exact number of post-consolidated shares will
vary depending on the treatment of fractional shares which will occur when each
shareholder’s holdings in the Company are consolidated. Outstanding stock
options and warrants would be adjusted by the same ratio as any resulting share
consolidation.
If the ordinary resolution is approved, the consolidation
will be implemented, if at all, only upon a determination by the Board that share
consolidation is in the best interests of the Company and its shareholders at
that time. In connection with any determination to implement a consolidation,
the Company’s Board will set the timing for such a consolidation and select the
specific ratio from within the range set forth in the special resolution.
Shareholders will also be asked to approve an
ordinary resolution authorizing the name of the Company to be changed to
Shoshoni Gold Ltd., or such other name as may be suitable concurrent with or
following any consolidation. Subject to approval of the shareholder resolution,
the Board may authorize a change of name of the Company subject to regulatory
or TSX Venture Exchange requirements.
Don Weinert has
resigned as director of the Company. The Company wishes to thank Mr. Weinert
for his many years of service and association with the Company.
Glen Macdonald
P.Geol. a Qualified Person as defined in NI43-101 has approved the technical
content of this news release.
Additional
information on the Company is available on its website at http://www.newshoshoni.com
.
NEW SHOSHONI VENTURES LTD.
Ralf
Hillebrand
President
For
more information, please contact Mark Tommasi at 604-608-6314 or toll free at
1-877-454-0383.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.