West Perth-based Halcyon Group Ltd will change its name to Nickelore Ltd and consolidate its capital as part of a move into nickel mining and processing, the company has announced.
West Perth-based Halcyon Group Ltd will change its name to Nickelore Ltd and consolidate its capital as part of a move into nickel mining and processing, the company has announced.
The company plans to reduce its number of shares on issue from 658 million to 65.8 million by consolidating its shares and options on a one for ten basis, subject to shareholder approval.
Halcyon's managing director Iggy Tan said the consolidation would enable the company to fundraise more effectively for the development of a recent mineral rights acquisition and other parts of its asset portfolio.
The acquisition of mineral rights to the Canegrass nickel tenements, formerly known as Siberia, was acquired yesterday for a cash payment of $800,000, as well as 90 million shares and 710 options.
The full text of a company announcement is pasted below
Name Change
The Board of Halcyon Group Limited ("Halcyon or "the Company") is planning to change the Company name to Nickelore Limited to reflect a proposed move into nickel mining and processing.
Managing Director of the Perth-based nickel company, Iggy Tan said today that the change of name was recommended after a recent review of the Company's business strategy.
"In this context, the name Nickelore is a more appropriate identity for the Company."
"I am sure that Halcyon shareholders will be very positive about the new proposed company name and branding highlighting the transition to nickel production", said Mr Tan.
Consolidation of Capital Structure
The Company is also planning a capital restructure that will enable it to pursue the objective of becoming a nickel producer. To achieve this, the Company will consolidate its existing securities on a 1:10 basis which means that every 10 existing shares will be consolidated into 1 share. Accordingly, the Company's existing shares on issue of 658,066,307 will be reduced to 65,806,630. In addition, every 10 existing options will be consolidated into 1 option and the exercise price of each option will be multiplied by a factor of 10.
Managing Director, Iggy Tan said that the consolidation is proposed in order to provide the Company with a more appropriate capital structure going forward.
"As part of the revival strategy, the consolidated capital structure should enable the Company to more effectively raise the financing required to develop the Canegrass Mineral Rights acquisition and the Company's existing portfolio of mineral assets".
The name change and capital restructure will be subject to shareholder approval at an extraordinary general meeting planned for 30 October 2007 at the Celtic Club, West Perth. If approved the new ASX code will be NIO. The consolidation will take effect from the next business day after the resolution is passed.
