Drilling Completed at DS Copper Gold Prospect Ground Reconnaissance Completed at Arrowsmith Prospect Sunrise Gas Well to be Flow-Tested Resolution for Share Consolidation Proposed Director Resigns
NEW SHOSHONI VENTURES LTD.
609-475 HOWE STREET VANCOUVER, B.C.
V6C 2B3
TEL: (604) 682-1643 FAX: (604) 682-1666 [email protected]
TSX VENTURE EXCHANGE SYMBOL: NSV Frankfurt: NWV
September 8, 2011 News Release
Drilling Completed at DS Copper Gold Prospect Ground Reconnaissance Completed at Arrowsmith Prospect Sunrise Gas Well to be Flow-Tested Resolution for Share Consolidation Proposed Director Resigns
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.