Abitex Resources Provides Corporate Update
January 22, 2013, Val-d’Or, Quebec: Abitex Resources Inc. (TSXV: ABE) (the “Company”; “Abitex”) provides the following corporate update to its shareholders:
Write-Off of Lavoie Property
The Corporation’s option agreement for the Lavoie uranium-gold property in the Otish Mountains of north-central Quebec called for $4M exploration expenditures in 2012. Abitex was unable to meet this obligation by year-end and is therefore in default as per the terms of the option agreement. Attempts to extend/modify/renegotiate the option agreement with the property owners were unsuccessful and the option agreement is considered rescinded. Consequently, the Corporation has completed a $9.5M write-off of the full value of the Lavoie project in its annual financial statements. Abitex retains its 100% interest in the Epsilon property in the same geographic area where it has spent almost $3M since 2008 and on which it has made several high grade uranium-gold discoveries.
Annual General and Special Meeting
The Corporation’s annual general and special meeting will be held February 28th at the Corporation’s offices in Val d’Or, Quebec. Amongst the items on the agenda are special resolutions submitted for shareholder approval for a consolidation of the shares and a change of name of the Corporation.
The Management of the Corporation is proposing to consolidate its share capital. In the opinion of the Management, a consolidation of common shares of the Corporation on the basis of ten (10) existing shares for one (1) new common share is the proper action to make the Corporation more attractive to investors financing the Corporation’s activities as well as buying securities either privately or on public markets. The special resolution must be approved by not less than two-thirds of the votes cast by the holders of Common Shares present in person or represented by proxy at the Meeting to be effective. If the Share Consolidation is implemented, the number of outstanding securities of the Corporation will be 9,510,943 common shares and 700,000 options to purchase common shares.
The Management of the Corporation will also propose to change the name of the Corporation to “ABE RESOURCES INC. / RESSOURCES ABE INC.”
Management of the Corporation believes the share consolidation and name change are in the best interests of the shareholders and recommend to shareholders to vote for both special resolutions.