Card Lake to make share consolidation

Junior Card Lake Resources (CDN) is set to consolidate its shares and change its name.

If shareholders approve the move, 10 shares of the company will be exchanged for one share of Franc-Or Resources. Franco-Or would then have 7 million shares outstanding and would resume trading on the Canadian Dealing Network.

Franco-Or will be able to earn an 80% interest in 15 concessions, totaling 174 sq. km, in French Guiana. The concessions are underlain by the Sophie-Saul shear zone, which has produced more than 300,000 oz. gold. Franc-Or will be able to earn the interest from KWG Resources (ME) which, in return, will receive 4 million Franc-Or shares.

A private placement worth $1.25 million will enable Franc-Or to raise the necessary capital; it will also sell $4.4 million worth of units to European investors.

Also, Franco-Or plans to sell a 1% gross production royalty to Euro-Nevada Mining (TSE) for $275,000. Euro-Nevada would then be able to increase its gross production royalty by 1% for a 3-year period.