OREANDA-NEWS. November 24, 2015. Minera IRL wishes to report that the Board of Minera IRL Limited is promoting agitation and conflict in the Community of Ollachea, with the goal of destabilizing peace and order to have a group of community members sign a declaration in their favor, one week before the EGM of Company shareholders on the 26 November.

·    Mr Jaime Pinto, non Executive Director leading the Board of Minera IRL Limited, is under criminal investigation for charges of corruption and generating losses of US\\$50 million for the Peruvian State. 

The investigation is in process against Mr Pinto before the 2nd Provincial Criminal Prosecutor's Office which specializes in corruption charges for public employees.  This investigation relates to the loss of large sums for the purchase of external debt during Mr Pinto's time of employment with the Peruvian Ministry of Economy and Finance. 

·    Also, during his time as CEO of Mantaro Peru SAC, Mr Pinto utilised divisive practices in neighbouring communities to the Phosphate Exploration Project in Junin, the Project remains paralyzed indefinitely.

·    The Board of Minera IRL Limited is currently promoting division in the Community of Ollachea, failing to use the proper channels of the elected Board of the Community, or to respect the Community's statements.  These actions have been reported to the National Office of Dialogue and Sustainability of Counsel, to the President and the Office of Social Development in the Ministry of Mining and Energy.

·    Through meetings with a small group of community members in Lima, distribution of leaflets, the convenient editing of private meetings with the Community and looking for signatures in the streets of Ollachea, the Board is promoting the removal of the actual President of the Community, generating insurgency and disrespect for the decisions of the Community Assembly.

·    The small group of community members who met in Lima with Mr Jaime Pinto (as reported in their press release of November 13), were instructed by Mr Pinto to distribute his letter, which accuses the Community of being manipulated, and questions their decision.

·    This leaflet and press release from the Board of Minera IRL Limited, generated a response from the Board of the Ollachea Community, who are qualified to respond, according to the Law of Rural Communities of Peru.  Their statement asked for respect and that Mr Pinto abstain from continuing with those same actions.

·    Despite this, the Board of Minera IRL Limited persisted in its actions and published in its website conveniently edited videos of a meeting with the Community held on November 7.  The meeting lasted for over 2 hours and the edited video only presents 6 minutes.   The end of the video features messages (not from the Community) downgrading the Directors proposed by shareholders for the EGM of November 26 and mentions one of the  shareholders of the Company.

Minera IRL SA laments that the current Board of Minera IRL Limited, due to its lack of knowledge about Communities in Peru, is generating conflict, at the expense of 8 years of good relations developed with the Rural Community of Ollachea, and reiterates that charges of these dealings are before the correct authorities.