Colorado Goldfields Announces FINRA Approval of 5000:1 Reverse Stock Split; Trading Symbol "CGFID" for 20 Business Days; Colo...
September 13 2012 - 7:28AM
Marketwired
Colorado Goldfields Inc. (OTCQB: CGFID) (OTCQB: CGFIA) announces
that the Company has received approval from the Financial Industry
Regulatory Authority, Inc. ("FINRA"), of its 5000:1 reverse stock
split. Beginning September 12, 2012, the symbol will be "CGFID."
After 20 business days, the symbol will revert to the original
symbol, "CGFIA." The post-split shares are assigned the new CUSIP
number of 19647Y609. Transmittal letters will be sent to all
shareholders of record affected by this reverse stock split by the
Company's transfer agent, Corporate Stock Transfer of Denver,
Colorado.
The Board of Directors believes that the current market price of
the Company's Class A Common Stock is impairing its acceptability
to certain investors, clearing firms, and other members of the
investing public, and has approved the reverse split in
anticipation that it could result in a significant improvement in
the per share price of the stock.
C. Stephen Guyer, Chief Financial Officer of Colorado
Goldfields, stated, "We are effecting a reverse stock split to
better align the stock price with the Company's accomplishments and
operational objectives. Further, we have performed extensive
multi-variate analysis surrounding this action. We believe this
transaction will broaden our shareholder base, increase the appeal
of the stock to investors, and help facilitate electronic
transactions of our stock through DTCC. While reverse splits are
sometimes viewed as a negative event, we strongly believe that this
reverse split will provide benefits to our shareholders by
improving trading accessibility and liquidity, thereby enhancing
long-term shareholder value."
On September 12, 2012, every 5,000 shares of Class A common
stock of CGFIA will automatically combine into one share of Class A
common stock. The reverse split will reduce the number of shares of
issued and outstanding Class A common shares from approximately
28.2 billion pre-split to approximately 5.7 million post-split. The
number of authorized shares of Class A common stock will be reduced
from 35 billion to 7 million. Proportional adjustments will be made
to Colorado Goldfields' convertible notes and equity compensation
plans. All fractional shares will be rounded up to the nearest
whole number. The Reverse Split will not negatively affect any of
the rights that accrue to holders of CGFIA common stock or common
stock equivalents. The reverse split is not a taxable event to
existing stockholders.
As part of the on-going reclamation of the exiting tailings
ponds at the Company's Pride of the West Mill, as approved by the
Colorado Division of Reclamation, Mining and Safety under Technical
Revision No. 11, the Company is proceeding with evaporation of the
remaining waste water contained in the mill drain pond and cell 1A
of the existing tailings ponds. Both of these facilities are being
reclaimed in accordance with the technical revision, which was
first approved on June 27, 2011.
The mill drain pond contained approximately 90,000 gallons of
water and Cell 1A contained approximately 1,000,000 gallons of
water. Since August 12, 2012, approximately 800,000 gallons of
water has been evaporated -- 90% from the mill drain pond and 75%
from cell 1A. Evaporation of the water, the first step in
reclaiming the facilities, is expected to be completed by September
30, 2012. Following evaporation of the water, the old liners will
be breached and the areas backfilled with reclamation materials.
Three specialized dewatering 2 x 2 pumps running at 3,450 rpm and
20 water sprayers are being utilized to evaporate the water.
Gold stocks
About Colorado Goldfields Inc. Colorado
Goldfields Inc. (OTCQB: CGFIA) (OTCQB: CGFID)
(http://www.cologold.com) is a Denver-based junior exploration and
mining company primarily exploring for gold and silver. Our
seasoned management team targets historic gold camps with strong
potential for multiple deposit discoveries. Currently, our business
model in Colorado provides an outstanding combination of former
producing properties with excellent exploration and production
potential and a currently inactive, modern, up to 700 ton per day
capacity mill facility to allow for an attractive short-term
production time frame. A 3D animation showing ore processing may be
viewed on the Company's website at:
http://www.cologold.com/prideofthewest.htm. A video tour of the
Pride of the West Mill may be viewed at:
http://www.cologold.com/uploads/2009-05-14_Mill.wmv
The Company has made available a current CGFIA Fact Sheet in PDF
format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.
Notice regarding forward-looking
statements This news release may contain forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements or information includes statements regarding the
expectations and beliefs of management. Forward-looking statements
or information include, but are not limited to, statements or
information with respect to known or unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information. Forward-looking
statements or information are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements or
information, including, without limitation, risks and uncertainties
relating to obtaining financing to meet the Company's exploration
program and operating costs during its exploratory stage, the
interpretation of exploration results and the estimation of mineral
resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations, accidents, equipment breakdowns, title
matters, or other unanticipated difficulties with or interruptions
in production and operations, the potential for delays in
exploration or development activities or the completion of
feasibility studies, the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations, currency fluctuations, regulatory
restrictions, including the inability to obtain mining permits and
environmental regulatory restrictions and liability, the
speculative nature of mineral exploration, dilution, competition,
loss of key employees, and other risks and uncertainties, including
those described under "Risk Factors" in the Company's Annual Report
on Form 10-K filed on November 23, 2011, which is on file with the
Securities and Exchange Commission at
http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm,
as well as the Company's other SEC filings. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements. Accordingly,
readers are advised not to place undue reliance on forward-looking
statements or information. The Company does not undertake any
obligation to release publicly revisions to any "forward-looking
statement," to reflect events or circumstances after the date of
this news release, or to reflect the occurrence of unanticipated
events, except as is required under applicable securities laws.
Cautionary note to U.S. Investors -- The United States
Securities and Exchange Commission permits U.S. mining companies,
in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. We use certain terms on this website (or press release),
such as "measured," "indicated," and "inferred" "resources," which
the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosures in our 10-K which may be
secured from us, or from the SEC's website at
http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm,
this press release may contain information about adjacent
properties on which we have no right to explore or mine. We advise
U.S. investors that the SEC's mining guidelines strictly prohibit
information of this type in documents filed with the SEC. U.S.
Investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our
properties.
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Contact: Investor Relations Colorado Goldfields Inc.
866-579-9444 or 303-984-0524 http://www.cologold.com