JERSEY, Channel Islands, United
Kingdom, Nov. 21, 2013 /CNW/ -
(TSXV - WMI) - Whetstone Minerals Ltd. ("Whetstone")
announced today that it has mailed a notice and information
circular - proxy statement for its extraordinary general meeting of
shareholders to be held at 9:00 a.m.
MDT on Thursday, December 12,
2013 at the offices of Burnet, Duckworth & Palmer LLP,
Suite 2400, 525 - 8th Avenue S.W., Calgary, Alberta T2P 1G1. Among the matters to
be considered at the shareholders' meeting is the summary winding
up of Whetstone which, if passed at the meeting, will commence and
the directors will begin the process of settling the company's
liabilities and distributing its assets to shareholders. A copy of
the notice and information circular - proxy statement is available
under Whetstone's profile on SEDAR at www.sedar.com.
Rationale for the Summary Wind Up of
Whetstone
Whetstone's business plan was based on two
fundamental premises:
- 2013 would see a significant improvement in the Zimbabwe economy, thereby creating:
(a) a more conducive environment for
high risk mineral exploration and new deposit discovery in a
jurisdiction that has good potential but has seen little
exploration spend for 30 years; and
(b) a multiple upward price adjustment
for existing "resource ounces in the ground";
- that global risk appetite for mineral exploration investment,
in particular gold, would continue because:
(a) the gold price would hold at the
$1,500 per ounce + level; and
(b) the commodity cycle in general
would maintain a positive trend providing the liquidity needed for
"junior explorers" to raise high risk exploration and development
funds.
Neither of these premises has transpired.
Management's view is that the current environment, in particular
adversity to exploration risk and lack of liquidity, will continue
for the next several years. This situation will make it very
difficult for junior exploration companies to raise funds to not
only explore, but to survive.
Although Whetstone has the ability to identify
new and high potential projects elsewhere in Africa, it will be exceptionally difficult to
raise significant additional funds beyond its current resources
that will be necessary to advance such projects from discovery to
definitive feasibility. In addition, the annual sustaining
costs of remaining a publicly listed company (ie., audit, legal and
regulatory etc.) will continue to deplete the company's remaining
cash reserves.
In light of the foregoing, it is management's
and the Board's view that the most responsible course of action is
to wind up Whetstone's current operations, dispose of its assets
and distribute the net cash realized to its shareholders rather
than: (a) continuing exploration activities in Zimbabwe; (b) seeking to acquire another
project that will require substantial funding over the next few
years for development; or (c) eroding its cash resources by paying
annual sustaining costs until risk appetite for mineral exploration
and development projects returns.
About Whetstone Minerals Ltd.: Whetstone
Minerals Ltd. is a gold exploration and development company focused
on Zimbabwe, where it owns a
number of advanced exploration projects including several former
producing mines. Whetstone's common shares are listed on the
TSX Venture Exchange under the trading symbol
"WMI". Whetstone's website address is
www.whetstoneminerals.com.
Neither the 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.
Forward-Looking Statements:
Statements in this press release, including but not limited to
Whetstone's intention to proceed with the summary wind up of the
company subject to obtaining the requisite shareholder approval of
the wind up at the extraordinary general meeting of shareholders
constitute forward-looking statements. Forward-looking
statements 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 including, without
limitation, that Whetstone may determine not to proceed with the
summary wind up of the company and/or that the requisite
shareholder approval of the wind up will not be obtained at the
shareholder meeting. Statements containing forward-looking
information express, as at the date of this press release,
Whetstone's plans, expectations, or beliefs as to future events or
results and are believed to be reasonable based on information
currently available to Whetstone. There can be no assurance
that forward-looking statements will prove to be accurate.
Actual results and future events could differ materially from those
anticipated in such statements. Readers should not place
undue reliance on forward-looking information. Whetstone does
not undertake to update any forward-looking information except in
accordance with applicable securities laws.
SOURCE Whetstone Minerals Ltd.