TORONTO, May 24, 2018 (GLOBE NEWSWIRE) -- A week following the filing of an information circular by Eric Owens, former CEO, current director, and founder of Alexandria Minerals Corporation (“Alexandria”), he and other concerned shareholders (together the “Concerned Shareholders” or “Founder’s Group”) are shining a light on the very real choice facing shareholders.
Special Meeting
The Founder’s Group believes that while Alexandria’s current management, including Walter Henry, Gary O’Connor, and Board Chair Peter Gundy (together the “Affected Directors”), have been busy consuming Alexandria’s dwindling financial resources without a plan to replenish the funds, Mr. Owens’ is taking the necessary steps to ensure shareholders get the best value for their investment.
The Concerned Shareholders believe that support for Mr. Owens’ strategic vision for the company at the special meeting of shareholders to be held on July 24, 2018 (the “Special Meeting”) is the only choice that will result in value creation for Alexandria and its shareholders. Shareholders will be asked to approve fixing the size of the Board at six directors, to remove each of the Affected Directors and to elect each of Mr. Owens’ nominees (the “Founder’s Nominees”) to the Board: Chris Hopkins, Ian Mellon and Colin Sutherland (collectively, the “Proposals”).
Val d’Or Property
Alexandria’s Val d’Or, Quebec site – located in one of the premier gold districts in the world – has enormous potential and remains largely unexplored. Financing is essential for Alexandria to be able to explore this property, demonstrate its value and fully realize shareholder value in the company. For this reason, securing financing and engaging in a drilling program were central to the 2017-2018 Alexandria strategic plan, however; the Affected Directors have abandoned this course of action.
In 2017, Alexandria’s Board approved a budget that included an extensive early 2018 drilling program. Then-management, led by Mr. Owens, was following through on that program and had raised more than $20 million in financing to allow it to proceed. Inexplicably, the Affected Directors refused in early 2018 to approve the financing, in effect rejecting a much-needed cash infusion and halting the company’s exploration drilling activities. Now, having apparently come to the belated realization that raising funds is imperative to Alexandria’s success, the current board appears to have engaged in an opaque sell-off of Alexandria assets for the relatively minor sum of $250,000. Unfortunately, this type of transaction, of which there can only be so many, will come nowhere close to raising the funds necessary to put Alexandria back on track.
Taken together, the disregard shown through their actions by the Affected Directors for shareholder interests is irresponsible and misguided. The potential of the Val d’Or property, as evidenced by the fact the property next door to Alexandria’s – where a similar strategic plan to Mr. Owens’ was fully executed – sold for $600 million, is simply too great to be ignored.
Mr. Owens is positioned to once-again raise the necessary financing that would allow the Company to realize the potential of the Val d’Or property on behalf of all shareholders. This is not the time for short-term, self-interested dealing; this is the time to fully explore the Val d’Or property and to ensure maximum shareholder value is realized. Please support Mr. Owens’ Proposals at the Special Meeting.
Disclaimers and Forward Looking Statements
Eric Owens has not sought or obtained consent from any third party to the use herein of previously published information. Any such information should not be viewed as indicating the support of such third party for the views expressed herein.
This press release includes forward-looking statements that involve certain risks and uncertainties, including, without limitation, in respect of Mr. Owens’s and Alexandria’s respective priorities, plans and strategies for Alexandria and Alexandria’s anticipated financial and operating performance and prospects and statements relating to the ability of Mr. Owens to effect change to the board of directors of Alexandria. Such risks also include, but are not limited to, lack of cooperation from the current board and management of Alexandria regarding the conduct of a shareholders meeting, any potential actions that may be taken by the current board and management of Alexandria that could thwart any efforts to bring change to the board of Alexandria, changes in general economic and financial market conditions, changes in law, the ability to implement business strategies and plans and pursue business opportunities, and conditions in energy industry. There can be no assurance that the plans, intentions or expectations upon which such forward-looking statements and information are based will occur or, even if they do occur, will result in the performance, events or results expected. You should not place undue reliance on such statements. Eric Owens does not assume any obligation to update the forward-looking information except as required by law.
Information in Support of Public Broadcast Solicitation
Eric Owens is relying on the exemption under section 9.2(4) of National Instrument 51-102 – Continuous Disclosure Obligations and section 150(1.2) of the Canada Business Corporations Act to make this public broadcast solicitation. The following information is provided in accordance with securities and corporate laws applicable to public broadcast solicitations.
This solicitation is being made by Eric Owens, and not by or on behalf of the management of Alexandria. The registered and mailing address of Alexandria is 1 Toronto Street, Suite 201 Toronto, Ontario M5C 3B2.
Eric Owens has filed an information circular containing the information required by Form 51-102F5 – Information Circular in respect of the Founder’s Nominees, which is available under Alexandria’s profile on SEDAR at www.sedar.com.
Mr. Owens is not requesting that Alexandria shareholders submit a proxy at this time. Once Mr. Owens has commenced a formal solicitation of proxies, a registered holder of shares of Alexandria that gives a proxy may revoke it: (a) by completing and signing a valid proxy bearing a later date and returning it in accordance with the instructions contained in the form of proxy to be provided or as otherwise provided in the proxy circular accompanying such proxy; (b) by depositing an instrument in writing executed by the shareholder or by the shareholder's attorney authorized in writing, as the case may be: (i) at the registered office of Alexandria at any time up to and including the last business day preceding the day the Meeting or any adjournment or postponement of the Meeting is to be held, or (ii) with the chairman of the Meeting prior to its commencement on the day of the Meeting or any adjournment or postponement of the Meeting; or (c) in any other manner permitted by law. A non-registered holder of shares of Alexandria will be entitled to revoke a form of proxy or voting instruction form given to an intermediary at any time by written notice to the intermediary in accordance with the instructions given to the non-registered holder by its intermediary.
Proxies for the Special Meeting may be solicited by mail, telephone, email or other electronic means as well as by newspaper or other media advertising, and in person by associates, agents, representatives and employees of Eric Owens, who will not be specifically remunerated therefor. In addition, Mr. Owens may solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable Canadian securities laws, conveyed by way of public broadcast, including through press releases, speeches or publications, and by any other manner permitted under applicable Canadian laws. Mr. Owens may engage the services of one or more agents and authorize other persons to assist him in soliciting proxies should he commence a formal solicitation of proxies. In this regard, Mr. Owens has entered into an agreement with Navigator Ltd., which has agreed to act, in addition to other capacities, in a capacity to assist Mr. Owens in the oversight and solicitation of proxies in connection with the Meeting. Pursuant to this agreement, Navigator Ltd. will be paid a fee of $15,000 for this activity. All costs incurred for the solicitation will be borne by Mr. Owens. Dan Palikrousis has contributed funds to Mr. Owens to defray the costs of such solicitation; as a result he may also be deemed to be a “solicitor” within the meaning of applicable securities laws.
To the knowledge of Mr. Owens, neither he nor any of his associates or representatives, nor any of the Founder’s Nominees, or their respective associates or affiliates, has: (i) any material interest, direct or indirect, in any transaction since the beginning of Alexandria' most recently completed financial year or in any proposed transaction that has materially affected or would materially affect Alexandria or any of its subsidiaries; or (ii) any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter currently known to be acted upon at the Meeting, other than the election of directors of Alexandria.
For more information:
Mike Van Soelen
Navigator Ltd.
mvansoelen@navltd.com
(416) 307-3039