Click here to close now.




















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
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...