Minera IRL shareholders should back EGM proposals
These shareholders, have chosen to intervene in Minera IRL Ltd to help address serious concerns about the governance of the Company, which are seen as affecting financial and key stakeholder relationships.
They recommend their fellow shareholders to VOTE FOR change by appointing 6 new Directors and removing the 3 current incumbent Directors. This vote for positive change by ensuring an independent and experienced governance structure is put in place is for the following key reasons:
We need a winning business plan to repair the Company's value
A fresh independent Board is needed to implement this change
To resume the good relationship with stakeholders
There is a need to improve Corporate Governance Standards
We need a winning business plan to repair the Company's value for shareholders
· Corihuarmi Gold Mine has a life of mine (LOM) until mid-2017, with strong potential to increase the LOM to 2019, through a minor investment in a drilling programme, which the new Board will promote; and
· The development of the flagship Ollachea project was jeopardized by the actions of the former Executive Chairman Daryl Hodges and by recent comments made by current Non Executive Chairman Jaime Pinto. A new Board is required to repair links with the Ollachea community and provide continuity and effective management going forward.
The Way Forward - The Requisitionist shareholders' business case is seen as providing better value for shareholders; key elements are:
· Under a stable and effective new Board, the Company will be much better placed to secure necessary funding. COFIDE, Peru's state-owned development bank, will structure a debt facility of up to $240m under which Jorge Ramos will sit on the otherwise predominantly independent Minera Board;
· The resuming of this financing will help build the Ollachea gold Project in the South of Peru, and to extend the lifespan of the Corihuarmi mine; and
· Bringing a halt to costly remuneration practices that has seen the former Executive Chairman potentially receiving US$1,035,000 for a seven month period from March to December 2015. This include a 'Golden parachute' termination clause of USD500,000 being provided for the former Executive Chairman in the advent of a change-in-control, and a payment to him each month of USD15,000 since his removal from the Board.
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