Eagle Hill (CVE:EAG) has announced a proposed share consolidation of its common shares on a 20-for-1 basis. It expects to have about 23.8 million shares issued and outstanding following the consolidation, compared to 476.9 million previously.
The company said it believes the move is in the best interest of shareholders, and will improve its ability to attract new investors and to raise additional capital, which will be necessary to advance its Windfall Lake gold project in Quebec.
The share consolidation still requires the approval of Eagle Hill shareholders as well as clearance from the TSX Venture Exchange.
The 30,650 acre Windfall Lake property, which sits just 200 km northeast of Val d'Or, is in the top 10 percent (in terms of grade) of resource-stage gold projects worldwide with gold grades averaging 9.8 g/t in the indicated category.
The company is expecting to complete the preliminary economic assessment for the property in the first quarter of this year. Last November, Eagle Hill revealed that additional metallurgical testing showed up to 95.7 percent of gold at Windfall could be recovered using a standard flotation and cyanide leaching process, an increase from the 91.7 percent used in the previous NI 43-101 compliant technical report on the project dated April 2014.