Founder’s Group Calls Out Alexandria Minerals Corporation’s Ongoing Disregard for Shareholders - Latest Filing of 43-101 Report Shows Eric Owens’ Planmost Sensible for Value Creation
- PLEASE NOTE: For support in revoking your vote for the Affected Directors please call Navigator at 1-(844) 846-0441 or email proxy@votefoundersgroup.ca.
TORONTO – July 22, 2018 – Eric Owens and his supporters (the “Founder’s Group”) continue to call out the disregard of Alexandria Minerals Corporation (“Alexandria”, or the “Company”) for shareholders’ rights to timely and accurate information about the Company.
The Founder’s Group point out that Alexandria Minerals Corporation filed on www.SEDAR.com the technical report on the Company’s Orenada Zones 4 and 2 (the “Technical Report”) on Friday, July 20, the last possible date that it could be filed, completed with no news release or notice to shareholders – and conveniently right after the proxy cut-off time for the upcoming shareholder meeting on July 24, 2018 (the “Meeting”).
It is clear after review of the Technical Report, the timing was no coincidence, as it vindicates Mr. Owens’ position and vision for the Company. In the words of the directors that Mr. Owens seeks to remove from the Board (the “Affected Directors”) at the Meeting, taken from their June 6, 2018 news release, the Technical Report“has enabled the Company to have a much better understanding of the styles and potential of ground within the belt and to know how to drill out, model and build resources more efficiently.” These directors go on to say, “The 2018 resource update at Orenada Zones 4 and 2 has resulted in a much more robust resource compared to the previous 2009 resource estimate.”
Since the goal of every junior exploration company is to explore and develop its mineral resource properties, the Technical Report constitutes good news indeed. The Technical Report used data sourced from a drill program conducted under the guidance of Mr. Owens, before the Affected Directors wrongfully terminated his employment as a reaction to his requisitioning the Meeting.
So why did the Affected Directors, in a separate news release also issued on June 6, 2018, denigrate the results of Mr. Owens’ drill program, which they acknowledge in the other press was highly successful? We believe when viewed in the context of all the facts, ‘they needed to justify their actions in trying to sell the Company for fire sale prices and in removing the only obstacle to such a sale;’ namely, Mr. Owens.
If further evidence is needed to substantiate that the Company by its actions is deliberately working to under-report its resource estimate, also consider that they have yet to explain why 40 per cent of the drill samples weren’t included in the resource estimate.
So where does this leave Alexandria and its shareholders? The Affected Directors have no clear plan to continue to develop the Company’s mineral resource properties. Beyond some vague talk about selling more of the Company’s assets and trying to find another buyer for the Company at bargain basement prices, the Founder’s Group has not been able to discern any clear direction from the Affected Directors.
On the other hand, Mr. Owens has consistently put forward a coherent plan to continue to explore and define the mineralization on the Company’s properties, and has a proven record of raising capital in order to do so. The Affected Directors naively think they can sell some spare assets and that is all that is needed; this thinking is foolish at best. Diligent exploration and discovery requires periodic capital infusion by committed investors, and Mr. Owens’ plan is the only realistic option to fund those activities.
The content of the Technical Report was in the control of the Affected Directors, as it was completed after Mr. Owens’ wrongful termination, which followed his requisitioning of the Meeting. Here are a few other questions shareholders should consider:
WHY WERE 40% OF HOLES NOT USED?In total, some 10,500 m worth of core from the 2017 drill program, and a further 12,300 m of drilling from 2018, were not used in the resource calculation, which has to result in an underestimate of gold ounces – we just don't know by how much.
WRONG GEOLOGICAL MODEL UNDERESTIMATES GOLD RESOURCES. Why was the deposit modelled as a high-grade veindeposit when Zone 4 is clearly an open-pit or bulk-tonnagedeposit? Such a model necessarily lowers the volume and tonnage of the deposit and likely lowers the ounces of gold.
CHANGE IN RULES OF 43-101. Some of the resources identified in the 2009 resource estimate were downgraded from the current resource estimate because of the imposition of more stringent rules governing the National Instrument 43-101. This principally affected estimates at Zone 2, where further infill drilling will be needed to reinstate them to a resource category.
CANCELLATION OF 60,000 METER DRILLING PROGRAM. The Affected Directors imply a future drill program. Why then did they cancel that very same drill program started by Mr. Owens? The resource estimate itself was always intended to be the first step in an aggressive, multi-phased exploration program and was never intended to be a final word.
ENORMOUS, LUCRATIVE LAND PACKAGE.
The fact is, the Val d'Or property still represents a great target for gold discovery. Integra Gold's property directly adjacent to Alexandria followed a similar discovery plan as proposed by Eric Owens and it sold for over $560 million or $1.21 a share. The good work and results to date clearly show that the discovery strategy is working and the path to real value creation for shareholders could best be achieved through continued exploration proposed by the Founder’s Group.
THE REAL MOTIVATION OF THE AFFECTED BOARD MEMBERS
Eric Owens interests are aligned with those of shareholders. From where we sit, current management seems to be more interested in selling off Alexandria on the cheap.
If, after considering all the facts, you wish to re-consider voting in accordance with the Affected Directors recommendations on their BLUE form of proxy or voting instruction form (VIF), you may still revoke your vote. Registered shareholders can follow the instructions below – however, most shareholders are “beneficial” shareholders holding through a brokerage account – in order to revoke your vote, please speak with your broker. The Company was required by law to include instructions on revoking your vote in the meeting materials sent to you in connection with the Meeting.
Reach out to Mr. Owens directly by email eric.owens@votefoundersgroup.ca, phone (416)-509-5385 or website www.votefoundersgroup.ca.
Need help revoking your vote? Call Navigator Ltd. by telephone at 1-(844) 846-0441 or email proxy@votefoundersgroup.ca.
For more information:
Mike Van Soelen,
Navigator Ltd
mvansoelen@navltd.com
(416) 307-3039
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