VANCOUVER, BRITISH COLUMBIA--(Marketwire - Mar 20, 2013) - Fairmont Resources Inc. (TSX VENTURE:FMR) ("Fairmont") announces that its shareholders will be asked to approve a consolidation of the Company''s issued and outstanding common shares at a ratio of up to four (4) pre-consolidation shares to one (1) post-consolidation share at the Annual General and Special Meeting of Shareholders to be held on April 16, 2013. The Board of Directors is recommending shareholders approve the share consolidation in order to better position the Company to finance its exploration and development activities on its mineral properties.
The Company currently has an aggregate of 20,225,433 common shares issued and outstanding. If the share consolidation were undertaken at the ratio of 4 to 1, the issued and outstanding common shares would be approximately 5,056,358. The Company does not intend to change its name in conjunction with the share consolidation.
If the consolidation is approved, the Board of Directors will have the authority to implement the consolidation at the ratio of up to 4 to 1 at any time and will be permitted, without further shareholder approval, to select a lower consolidation ratio if they deem it to be appropriate. Currently, the Board of Directors intends to implement the consolidation as soon as practicable following the approval of the consolidation by the shareholders and the TSX Venture Exchange. Notwithstanding approval of the consolidation by the shareholders, Fairmont''s directors, in their sole discretion, may abandon the consolidation without further approval, action by, or prior notice to shareholders.
The proposed consolidation is subject to the approval of the shareholders of the Company and the TSX Venture Exchange.
On behalf of the board,
Neil Pettigrew, Chief Executive Officer and President