Vancouver, British Columbia--(Newsfile Corp. - March 14, 2023) - Coloured Ties Capital Inc. (TSXV: TIE) (OTC Pink: APEOF) (FSE: 97A0) ("Coloured Ties") ("Ties") or the ("Companies") and privately held Bullrun Capital Inc ("Bullrun") and Bullrun together the ("Concerned Shareholders") are providing the following open communication to the board of directors and management of Azimut Exploration Inc. ("Azimut")
CONTINUED REFUSAL TO ACKNOWLEDGE OR ENGAGE WITH CONCERNED SHAREHOLDERS IN ANY CONSTRUCTIVE MANNER
The Concerned Shareholders are substantial shareholders of Azimut. Kal Malhi, CEO of Coloured Ties and Bullrun Capital has made numerous attempts to engage management of Azimut, including CEO Jean Marc Lulin and the rest of the Board of Directors ("the Board") in conversations to encourage fulsome disclosure of the Azimut exploration plans and activity on the extensive critical minerals land holdings in Quebec. The numerous attempts to engage with management and the Board have had no success and have been met with minimal or no response, including attempts made by the Concerned Shareholders subsequent to their news release of March 3, 2023.
As previously reported, the Concerned Shareholders, through legal counsel, delivered a written request for shareholder engagement together with a request for board representation on February 27, 2023. The only response provided by Azimut was that the Concerned Shareholders were welcome to attend the Azimut booth at PDAC or review the Company website and news releases.
The Concerned Shareholders then arranged for a phone call with the Azimut Chairman of the board and Mr. Lulin. On March 8, 2023 a call was convened but Messers Mullan and Lulin refused to speak about Azimut at all, objecting to the Concerned Shareholders legal counsel being present on the call. The Concerned Shareholders attempted to discuss the fact that Azimut's critical mineral assets were being given negligible valuation in the capital markets based on Azimut's lack of development efforts and the Company needed to amend its business practices and fast track the development of its vast critical mineral land holdings in Quebec.
Messers Mullan and Lulin refused to participate in any dialogue.
THE FACTS REMAIN THAT AZIMUT HAS AMASSED A VAST, IMPORTANT LAND HOLDING IN QUEBEC IN THE CRITICAL MINERAL PROSPECTS HOWEVER IT HAS FAILED TO DEVELOP THE PROSPECTS IN THE LAST FOUR YEARS.
The Concerned Shareholders are active investors in Quebec's Critical Mineral Exploration projects via investments in Junior Exploration Companies that have and are conducting aggressive and ethical exploration programs on ground adjoining and in some cases surrounding ground held by Azimut. These companies have made discoveries that have made James Bay the lithium exploration capital of the world and provided amazing shareholder returns to all investors in the James Bay region.
In contrast, Azimut holds what the Concerned Shareholders believe is the best and most prospective critical minerals ground in the region, and recently Azimut went on a staking frenzy to stake immense amounts of additional ground. Azimut's stock price has a diminished valuation compared to its peers. This valuation discount reflects the market's frustration with Azimut's refusal to explore these vast critical mineral land holdings and its sole focus to expend all its efforts and working capital in searching for gold deposits in remote locations of Quebec.
Mr. Jean Marc Lulin now stands on his insistence that Azimut has been in this region for 20 years and he knows the ground better the anyone. Mr. Jean Marc Lulin now claims that finding lithium deposits is easy and to let other junior exploration companies demonstrate the potential in the area surrounding Azimut land holdings is the way to extract value for these assets held by Azimut. This practice to acquire vast critical mineral land holdings in Quebec and then squat on these highly prospective lands is in direct contrast to others from outside Quebec and Canada who may "know the land less" but have established critical minerals deposits on ground adjoining or surrounding Azimut ground in the last three years.
This belief and business practice by Azimut is not supported by the capital markets, as demonstrated by the dismal valuation of Azimut common share price on the TSX-V stock exchange. Other publicly listed companies from outside Quebec and Canada that are actively exploring and finding large critical minerals deposits in the area are providing lucrative shareholder returns. Azimut's current market capitalization is a fraction of the value of companies that have been actively exploring for critical minerals in James Bay for the past three to four years while Azimut has been silent and/or oblivious of the critical minerals potential of these assets until the recent Concerned Shareholder actions.
The Concerned Shareholders believe that at a time when not only in Canada/Quebec but rather globally there is a focus on discovering critical mineral deposits, Azimut needs to establish a Board of Directors and Executive teams that are able to help Azimut revamp its business model, actually "EXPLORE" Quebec's critical mineral wealth with integrity and professionalism and inclusive of ALL stakeholders.
CONCERNED SHAREHOLDER PROPOSAL
At present it appears that Azimut is functioning as a private corporation with blind support from its Board of Directors who own very little stock in the Company. Management has demonstrated a lack of ability to understand Azimut's critical minerals asset base and deploy reasonable business practices to explore those assets and gain investor and industry respect as a credible exploration company. As he has done with the Concerned Shareholders, Mr Lulin has also refused to engage with other junior exploration Companies who are active on projects that adjoin or surround Azimut land holdings and who wish to partner with Azimut on these critical mineral assets. It almost appears as if Mr. Lulin is not willing to explore these amazing assets himself, but is also afraid to let others explore and make discoveries without credit to Mr. Lulin.
The Concerned Shareholders will continue to advocate for a revamp of Azimut's business practices and insist that the company establish a critical minerals division, engage a qualified critical minerals exploration executive team to run that division and engage in business practices that are respectful of ALL shareholders, adjoining property junior exploration companies and all other stakeholders, including Canada's current mandate to develop critical minerals assets in Quebec.
MANAGEMENT CLAIMS BLIND SUPPORT FROM THE "LIONS" QUEBEC ESTABLISHMENT
Mr. Jean Marc Lulin continues to refuse to engage with the Concerned Shareholders in ANY capacity and insists he has garnered unwavering shareholder support from Quebec's investment community to whom he referenced as being the "LIONS" of the Quebec establishment.
The Concerned Shareholders call upon the "LIONS" supporting Azimut and Mr. Jean Marc Lulin's current business practice of squatting on Quebec's critical mineral prospects to engage with the Concerned Shareholder to possibly alleviate any misunderstandings to help bring Azimut business practices in line with the interests of all shareholders, the Province of Quebec and Canada's critical mineral exploration industry and policies. Azimut shareholders, Board of Directors and any other stakeholders are welcome to reach the Concerned Shareholders through the following contacts:
Mr. Kal Malhi, CEO
Coloured Ties Capital and BullRun Capital Inc.
kal@colouredtiescapita.com
This is not a solicitation of proxies by the Concerned Shareholders.
About Coloured Ties Capital Inc
Coloured Ties Capital is a TSX-V listed issuer that invests in early stage commercial ventures and provides investee companies with capital market access and advisory services. The Company offers investors an opportunity to participate in early stage opportunities that are often only offered to high net worth or institutional investors via investment in the Company's common shares listed on the TSX Venture Exchange under symbol V.TIE. Coloured Ties Capital is a 2022 TSXV 50 Company.
For further information please contact:
Coloured Ties Capital Inc.
Kal Malhi Chief Executive Officer kal@colouredtiescapital.com
https://www.colouredtiescapital.com
https://www.bullruncapital.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.
The forward-looking statements contained in this news release present the expectations of the Company as of the date hereof and, accordingly, is subject to change after such date. Readers are cautioned not to place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/158418
