Monument Mining (TSX-V:MMY, StockForum), a Vancouver-based firm engaged in exploration for and development of gold and mineral property interests, issued a warning today to investors regarding a dissident shareholder group attempting to take complete control of the board.
The company wanted to impress upon shareholders that the dissident group would, if their slate was elected, act against the interest of Monument and its investors. GoldMet B.V., Monument's largest shareholder, assured the incumbent board that GoldMet, holding 19.67% of shares, would do nothing to oppose the the election of management's nominees.
According to the news release, the dissidents do not have a meaningful ownership position to justify their ploy and in fact, the estimated $47,000 worth of stock the group possesses would be dwarfed by the costs they propose to supplant the current board for members of their own choice.
The company cited that the current board was on track and progress at their different mining properties was satisfactory, considering mining law and economic conditions.
It was also noted that Monument's share price continued to outperform over the long term regardless of current market slips due to depressed gold prices. In fact, over the last five years, the company experienced a 65% value increase, while the TSX-V only climbed 15%
Monument Chairman, George Brazier, commented on the continuing turmoil, “This recently-surfaced dissident group wants 100% control of the board but has negligible ownership, vague plans and a poor understanding of corporate governance and mining law.”
Brazier went on, “Clearly this group is not up to the task of running Monument and shareholders are not being given the full story behind the dissidents' dubious and highly suspicious campaign."
He then added, “The dissidents are keenly aware of Monument's great potential for value creation. But they are hoping that shareholders passively cede control without receiving a premium price for control.”
And then concluded, “We believe the dissidents represent a grave danger to Monument and shareholders should not let them succeed.”
Monument was in the news recently when the company filed AGM materials outlining 2013 performance and future strategies.
Shares dropped 10.34% on the news to $0.26 per share.
Currently there are 275.2m outstanding shares with a market cap of $71.5 million.