Strategic Resources Inc. seeks shareholder approval for possible share consolidation

    




 TSX.V: STI 

 REGINA, Sept. 13, 2012 /CNW/ - Strategic Resources Inc. ("Strategic" or the "Corporation"), is announcing that at its upcoming Annual Special Meeting (the "Meeting"), to be held on October 4, 2012, at 11:00 am at the offices of Gardiner  Roberts, LLP, Suite 3100, Scotia Plaza, 40 King Street West, Toronto,  Ontario, M5H 3Y2, shareholders will be asked to approve a special  resolution approving a consolidation (the "Consolidation") of the Corporation's issued and outstanding Common Shares.  Currently,  the Corporation has 73,002,132 Common Shares outstanding.  If the full  Consolidation was undertaken, the outstanding Common Shares would be  reduced to approximately 7,300,213.  No fractional shares will be  issued Instead, if, as a result of the Consolidation, a shareholder is  entitled to a fractional Common Share, such fractional Common Share  that is less than ½ of one post-Consolidation Common Share will be  cancelled and each fractional Common Share that is at least ½ of one  post-Consolidation Common Share will be rounded up to one whole  post-Consolidation Common Share.  The Corporation is not intending to  change its name in concert with the Consolidation. 

 Background and reasons for the Consolidation  

 The board of directors of the Corporation (the "Directors" or "Board") believe that in order to facilitate access to additional working  capital to further the development of the Corporation's projects  including its New Mexico rare earth project, it may be necessary to  consolidate the issued and outstanding share capital. 

 The Corporation will continue in its efforts to raise additional working  capital without resorting to a share consolidation, however, given the  present difficult market conditions for junior exploration companies it  may be necessary to undertake the Consolidation so as to bring the  share price above the minimum threshold for capital-raising as dictated  by TSX policies. 

 If the Special Resolution is approved, the Board will have authority to  consolidate the Common Shares at a ratio of up to ten (10) to one (1).   The Board will be permitted without further shareholder approval to  select a lower consolidation ratio if it deems appropriate.  Approval  of the Consolidation by the shareholders would give the Board authority  to implement the Consolidation at any time.  As at the date hereof,  assuming the shareholders approve the Consolidation, the Directors  intend to implement the Consolidation as soon as reasonably practical  following the Meeting, subject to TSXV approval.  In addition,  notwithstanding approval of the Consolidation by the shareholders, the  Board, in its sole discretion, may revoke the Special Resolution and  abandon the Consolidation without further approval, action by, or prior  notice to Shareholders. 

 About Strategic Resources Inc. 

 Strategic Resources Inc. is a Canadian-based junior exploration company  with a Rate Earth exploration project in Lincoln County, New Mexico.  More information about the Corporation is available on line at www.strategicresourcesinc.ca. 

 Disclaimer: 

 Neither the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

 Forward looking statements: 

 This news release may contain certain forward-looking inferences or  statements.  These forward-looking inferences or statements are subject  to a variety of risks and uncertainties beyond the Corporation's  control or prediction and could cause actual events or results to  differ materially from those anticipated in such forward-looking  statements.  Although the Corporation believes that the assumptions  inherent in the forward-looking statements are reasonable, undue  reliance should not be placed on these forward-looking statements.   These forward-looking statements are made as of the date hereof and the  Company assumes no responsibility to update them or revise them to  reflect new events or circumstances, except as required by law.  

Strategic Resources Inc.


CONTACT:  Malcolm Bucholtz, President &CEO, Tel:[phone] [e-mail] 


    

Copyright