TSX:WDO
TORONTO, May 16, 2016 /CNW/ - Wesdome Gold Mines Ltd.
(TSX: WDO) ("Wesdome" or the "Company") today responds to a press
release issued by Resolute Performance Fund, an investment fund
managed by Resolute Funds Limited ("Resolute").
Early this morning, one day prior to the Annual Meeting of
Shareholders, the Board of Directors of Wesdome received a letter
from Resolute detailing concerns with operations and management of
the Company and the proposed slate of directors. Subsequently, a
press release was issued by Resolute. The slate of directors
outlined in the Management Information Circular dated April 1, 2016, includes three new nominees with
extensive experience in mining operations, mining company
management, technical expertise, and capital markets. There were no
objections to the slate by Resolute until today. As well, the two
existing directors that Resolute indicated it supports make up
2/3rds of the Governance and Nominating Committee, which
recommended these three new director candidates, plus the other
five current directors.
In 2013, Resolute instituted with the Company, a reconstitution
of board and management. The current board and management have
created significant value for all of the Company's shareholders,
including Resolute. Wesdome's shares have appreciated approximately
40% on a one year basis, 100% on a two-year basis, and 250% on a
three year basis. The Company has been developing a management
succession plan and has taken corrective action to improve
operations, as communicated in its press release dated May 11, 2016. In the best interest of all its
shareholders, management believes the Company should continue with
this strategy.
In response to Resolute's concerns, the Board today unanimously
created a Special Committee for the purpose of reporting and making
recommendations to the Board, and to ensure that any action taken
regarding Resolute's concerns are in the best interests of the
Company and is fair and equitable to all shareholders. The members
of the Special Committee are independent directors Charles Page (Chair) and Barry Smith, along with Rolly Uloth, the CEO.
The Company has postponed the annual meeting to a date no later
than June 14, 2016. Further details
will be communicated by the Company in a news release.
ABOUT WESDOME
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold
mining operations in Canada. The Company is currently
producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi
gold mines. Wesdome's goal is to expand current operations at both
mines over the next four years through mill expansion and
exploration. Wesdome has significant upside through ownership of
its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold
deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are
being explored and evaluated to be developed in the appropriate
gold price environment. The Company has approximately 129
million shares issued and outstanding and trades on the Toronto
Stock Exchange under the symbol "WDO".
SOURCE Wesdome Gold Mines Ltd.