RE:RE:RE:RE:RE:Ask Me Anything - Eric Owens@goldhunter11 Q: Support from AEM: You (EO) have been telling people on the phone and in various meetings that he has the support of AEM and a few other major shareholders. Can you repeat that claim in this forum that he has the confidence and full support from AEM (8%OS).
How much support in total he has now from shareholders?
A: It is not my place to speak to the position of Agnico, however I am confident in both my relationship with AEM and their ability to make an informed decision which best supports shareholder value. In the past, we have worked with them closely and they have strongly supported me and my vision for the company.
Q: Dan Palikrousis (brother of Mary Vorvis, former VP of AZX): How much commission he would make from the ~$20M PP that was arranged without the approval of the current BoD. Is this entire financing arrangement still in force, or has it fallen apart? It has been reported that (by the current management) that $5M of the total package of $20 has been kept, in trust, by your (EO) personal lawyer. What has happened to this sum of money? Has it been returned to the potential investors?
A: You ask a really important question about the collection of funds and where they were kept, this is something that I have wanted to address. All funds were deposited in a trust account in Alexandria’s name at one of the biggest law firms in the country, Norton Rose, who established the account for the express purpose of holding any funds collected in support of this round of financing. Because of the short sighted decisions of current management, all that much-needed financing has now been returned.
Q: The proposed slate of directors would include the 3 new nominees:, Hopkins, Mellon, and Sutherland to replace Gundy, Henry and O'Connor. Owens, Geis, and Patil would stay on the list as nominees. Can you ( EO) explain the Patil situation,... why was she included in the lawsuit against Gundy, Henry, O'Connor, and Patil?
A: In my view, Ms. Patil has been acting improperly. As such, we included her in the lawsuit. The reason she was left on as a nominee was because the recognition of her behaviour was not realized until we applied for the shareholder meeting.
Q: Dilution through equity financing: According to current management the dilution could be in the order of 55%, compared to sale of non-core assets (as stated in the 6 June 2018 NR) which could fetch similar amount without any dilution. Please explain the advantage of your financing through equity?
A: I disagree with their estimate of value for non-core assets as shown with the recent sale of the NSR. None of the non-core assets will bring anything close to the financing required. I have never been against these sales where they make sense, though there is not enough non-core assets to finance the exploratory drilling that is required. My vision for the company has a sustainable business model that does not merely look at short-term survival, rather a plan for growth that will ultimately unlock the greatest value for shareholders.
Q: Please confirm that all the money in the financing has been returned to the potential investors, including the $5M held in escrow by your personal lawyer.
A: Yes, all funds have been returned.