VANCOUVER, BRITISH COLUMBIA and LIMA, PERU--(Marketwire - Aug. 14, 2012) - Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVL:RCZ) ("Rio Cristal" or the "Company") announces that at the annual general meeting of shareholders of the Company to be held on September 11, 2012, an ordinary resolution will be proposed to consolidate the Company's share capital on a one new for ten old (1:10) basis (the "Consolidation").
Management of the Company believes that further equity financing is required in order for the Company to facilitate future financings. It is management's opinion that the Company's existing issued and outstanding share capital is not conducive to completing such additional equity financing, and that the Consolidation is required in order to facilitate attracting new equity investment in the Company.
The Company currently has 149,260,425 issued and outstanding common shares. Pursuant to the Consolidation, each 10 pre-Consolidation common shares will be consolidated into one (1) post-Consolidation common share. Accordingly, on completion of the Consolidation, the Company will have approximately 14,926,042 common shares issued and outstanding. The exact number of post-Consolidation shares will vary depending upon the treatment of fractions which will occur when each shareholder's holdings are consolidated. Outstanding stock options and warrants will similarly be adjusted by the Consolidation ratio.
The Consolidation is subject to acceptance by TSX Venture Exchange, in addition to shareholder approval.
The timing of the Consolidation will be governed by the regulatory and transfer agent requirements. A news release will be issued when the date of the Consolidation has been determined. The Company will not be changing its name in conjunction with the Consolidation.
Information about Rio Cristal Resources Corporation in English and Spanish can also be found on the Company's website, www.riocristalresources.com.
Neither 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.