Northern Vertex Mining Corp. [NEE-TSXV, NHVCF-OTC] says its board of directors has authorized a change in the company’s name to Elevation Gold Mining Corp. and a consolidation of its common shares.
“The board believes that the consolidation will provide the company with greater flexibility for the continued development of its business and the growth of the company,” Northern Vertex said in a press release that came after the close of trading on September 8, 2021.
It said the consolidation will occur on the basis of one post-consolidation common share for every six pre-consolidation common share. Prior to, or concurrently with the consolidation, Northern Vertex will be cancelling approximately 19.5 million common shares that are held in treasury related to the merger with Eclipse Gold Mining Corp.
After completion of the consolidation, the common shares will begin trading on the OTCQX platform for U.S.-based investors.
Following the cancellation of the merger shares, the remaining 364.9 million common shares issued and outstanding will be reduced to approximately 60.8 million post-consolidation prior to rounding for fractional shares.
No fractional shares will be issued under the consolidation.
The consolidation and the name change are subject to the approval of the TSX Venture Exchange and the pre-consolidation common shares will continue to be traded on the TSXV under the current trading symbol until the effective date of the consolidation and name change.
Northern Vertex shares fell 7.0% or $0.02 to 26.5 cents on volume of 505,170. The shares were previously trading in a 52-week range of 72 cents and 27 cents.
Northern Vertex recently merged with Eclipse Gold Mining Corp. in a move to create a new gold producer with a focus on the western United States.
The company’s key asset is the 100%-owned Moss gold-silver project in Arizona. The mine reached the commercial production stage in September, 2018, after the company’s partner Sprott Private Resource Lending LP, agreed to provide up to US$100 million in acquisition and development funding as well as a CAD$2 million private placement.
By deploying low-cost heap leaching recovery methods, Northern Vertex is expecting the Moss project to produce 45,000 ounces of gold equivalent during the first five years of production. Annual cash flow is projected at US$24 million and will be used to fund expansion and acquisitions.
Prior to the merger, Eclipse was working to develop the Hercules gold project, which is located 40 kilometres southeast of Reno, Nevada on the Walker Lake Gold Trend. The main premise driving exploration is that four large surface gold systems may be connected at a deeper level, creating a very large oxidized system.