Welcome!

News Feed Item

Intrepid Mines: Letter to Shareholders

BRISBANE, AUSTRALIA -- (Marketwired) -- 05/07/14 -- Intrepid Mines Limited (TSX: IAU)(ASX: IAU) (the "Company" or "Intrepid") releases a letter to shareholders.

Dear fellow shareholder

As you will be aware, you are being asked to vote at an Extraordinary General Meeting (EGM) on 13 May 2014 to replace the majority of the existing Board of Directors.

Activist shareholder Quantum Pacific is making another attempt to oust your Board with its requisitioned EGM next week. It has recently written to some shareholders, making several baseless allegations against your Directors.

Below are statements that set the record straight, make the Board's position absolutely clear and unequivocal to all shareholders and seek your support for the current Board by voting AGAINST each of the resolutions.

Quantum Pacific's current and previous actions have demonstrated that its ultimate goal is to gain control of the Company and its cash reserves without having to make a takeover bid.

It is important that you know the Company has explained to Quantum Pacific's spokesperson, Mr Greg Mazur that the EGM is an unnecessary and superfluous distraction and cost to the Company given that all of the current Directors are up for re-election at the Company's AGM on 30 May 2014.

And as previously advised, shareholders will be given the opportunity at the AGM to vote on a return of capital. The Board of Directors has also given an undertaking that shareholders will be asked to vote on any new investment opportunities proposed by the Company.

Your current Board of Directors - which has more than 35 years of experience with Intrepid - is ensuring that it will be shareholders that will determine the best way forward by voting on all options.

I have spoken with a number of major institutional shareholders in the lead up to the EGM and I am pleased to confirm that those shareholders continue to support your Board and management.

As to the baseless allegations by Quantum:

Allegation 1: Board has presented a flawed proposal by offering to return to shareholders substantially less than its current cash balance.

Reality: By pressing on the Board what is in effect a hasty and ill-considered proposal to wind up the Company, Quantum has created potential contingent liabilities that do not exist under a business-as-usual scenario. In every company, there are costs associated with winding up the business that are not listed in financial accounts which are prepared on a going-concern basis.

In Intrepid's case, these costs are potentially significant because the Company has operated in various jurisdictions around the globe. Final clearances in each of the jurisdictions in which it and its subsidiaries have operated need to be received from regulatory authorities before all available surplus funds can be released. To suggest that this indicates some form of conspiracy to hide cash away from shareholders is little short of ridiculous.

Allegation 2: The Board has decided to restrict shareholders to only voting on a return of capital, because it has a higher approval threshold, thus allowing the Board to ignore a majority vote in favour of a capital return.

Reality: The Board is giving shareholders the opportunity to vote on a return of capital at the AGM, because this is the only option that could have been put in the time available. A share buyback, because it does not necessarily affect all shareholders equally, requires a higher level of scrutiny, including an independent expert's report on the fairness of the proposed transaction. Despite Quantum's claims to the contrary, this form of return simply could not be prepared and reviewed by the regulator by the time the Notice of Meeting had to go to the printers to meet ASX and TSX statutory deadlines. The Board's view remains that if 75% of shareholders support the return of capital, then a decision will have been made, and we will move promptly to winding up the Company.

In the event that shareholders do not approve the return of capital, then the Board's aim will be to provide as much information as possible to allow you to see a range of alternatives before you irrevocably determine the Company's future. We will then bring all of those alternatives to yet another EGM in August 2014, including an investment proposition, a return of capital, a share buyback or even a combination.

It is noteworthy that in their Requisition for a shareholder meeting to consider returning money to shareholders, Quantum and Fides listed the Return of Capital as their preferred option presumably in full knowledge that the resolution required 75% approval.

Allegation 3: The Board favours a new acquisition, and is structuring the vote to maximise the probability of that being approved.

Reality: Your Board believes that in a situation where different shareholders have different objectives, a fully informed shareholder vote is the only way to resolve the differences fairly. We know that some shareholders currently prefer a return of capital, and this will be tested at the AGM. However, the only way that this will be an informed choice is if you also know what the alternatives are. It is Quantum Pacific who do not want you to see these alternatives, as they would only allow a vote on a return of capital.

Summary and recommendation

Quantum Pacific tried unsuccessfully to remove the Board in June 2013 and are doing so again, using misinformation as the basis for pursuing their own agenda. In calling for this meeting, Quantum is also causing the Company to incur unnecessary costs, given that the Annual General Meeting is just over two weeks later where all Directors are up for election, and the question of a capital return versus alternative uses of funds can be appropriately dealt with.

Shareholders (including Quantum Pacific) recently voted overwhelmingly in favour of a settlement to the Indonesian dispute - a clear endorsement of the actions of the present Board.

I urge you to vote AGAINST each of the resolutions, and to allow the present Board to continue to act in the interests of all shareholders. I look forward to chairing the Annual General meeting, discussing the future of the Company and giving shareholders the opportunity to guide the way forward.

In the meantime, should you have any questions please do not hesitate to contact me or Scott Lowe.

Yours sincerely

Ian McMaster AM, Chairman

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.