F3 Uranium names McElroy CEO, proposes share consolidation
The 1-for-10 plan has shareholder approval but still needs TSX Venture Exchange acceptance; Dev Randhawa becomes executive chair.
Ines Halvorsen
On Sept. 24, F3 Uranium Corp. CVEFUU OTCMKTSFUUFF appointed Ross McElroy chief executive and a director and proposed a one-for-ten share consolidation. Applied to the 631,833,670 common shares on F3's stock information page as read Sept. 24, the ratio implies about 63.2 million shares after consolidation, before any intervening issuances or fractional-share adjustments. Shareholders approved the consolidation at the May 14 annual and special meeting, but final TSX Venture Exchange acceptance remains outstanding.
The CVEFUU quote on Google Finance showed F3 at C$0.14 on the TSX Venture Exchange at its 4 p.m. EDT close on Sept. 23, before the announcement. The Sept. 24 release gave no effective date for the share change, leaving its trading timetable to a later notice.
Dev Randhawa stepped down from the chief executive and chairman posts and became executive chairman on Sept. 24, F3 said. McElroy, a registered professional geologist and F3 co-founder, took the top post and joined its board. F3 is exploring its Patterson Lake North, or PLN, holdings in Saskatchewan.
“Ross and I have been partners in uranium exploration for decades, and I’ve seen firsthand the tremendous value his geological expertise and industry leadership bring to a company,” Randhawa said in F3's Sept. 24 release.
Exchange Acceptance Remains Outstanding
The consolidation changes the number of shares representing a holding, while F3 says it leaves each holder's proportionate interest intact except for the treatment of fractions. F3 did not specify the treatment of fractional shares in its Sept. 24 announcement, so an account's final share count may not equal a simple division by ten.
F3's stock information page also listed 91,764,214 options and restricted stock units when read Sept. 24. It listed 71,063,418 warrants separately. The Sept. 24 notice did not spell out how those securities will be adjusted.
The July 21 drilling notice called for an initial program of about 4,000 metres at PLN, testing targets on the Broach and Minto properties. F3's July notice described PLN as a wholly owned, 42,960-hectare holding with the Tetra discovery 13 kilometres south of the JR zone. The company said its geophysical work had identified new targets for the summer program.
Read more: Westinghouse agrees Polish nuclear EPC terms
In its Aug. 25 update, F3 reported the first two holes of the summer program. Hole PLN26-229, drilled 950 metres east of Tetra, found basement alteration but no hand-held radioactivity above 300 counts per second. That observation is geological; F3 gave no uranium assay for the hole in that release.
The other hole tested Minto's A4 conductor and returned a peak handheld reading of 480 counts per second over a half-metre interval.
F3's Aug. 25 update said it planned at least one follow-up hole at Broach Target Area 1 during the summer program. Its Sept. 24 release said it would announce the consolidation's effective date once determined; it gave no date for TSX Venture Exchange acceptance or that notice.
