VANCOUVER, British Columbia–(BUSINESS WIRE)–June 29, 2022–
Sunvalley Company DMCC (” Valley of the Sun », www.sunvalleyinv.com ), a strategic and long-term investor in Canagold Resources Ltd. (TSX: CCM) (“ Canagold ”), today released its strategic plan to put Canagold on the right track. The plan details the case for a change to Canagold’s board of directors (the ” Plank “) and outlines Sun Valley’s strategic steps to advance Canagold’s flagship project, New Polaris, and to strengthen Canagold’s governance for the benefit of all shareholders.
The complete investor brief is available on SEDAR and at www.TheNewCanagold.com, which Sun Valley has developed as a resource for shareholders and to provide more information about its plan to enhance value for all shareholders. The website also allows shareholders to review important documents and key developments leading up to Canagold’s annual and special meeting on Tuesday, July 19, 2022 (the ” Meeting ”).
Here are some highlights from the investor presentation:
A change is urgently needed for a new Canagold
- Destruction of shareholder value: Since Canagold’s IPO on the Toronto Stock Exchange in 1994, total shareholder return has been wiped out by 98% under Mr. Cooke’s leadership. Canagold underperformed gold bullion by 23,000% and the S&P500 by 37,500%.
- Failure of operational and financial execution: Canagold’s main asset, New Polaris, has been almost flat for 28 years. Canagold is cash-strapped but has rejected premium funding offers from Sun Valley, causing project delays.
- Bad corporate governance: MM. Cooke and Burian and Dr. Malhotra served on the board for 35, 8 and 7 years, respectively, and are responsible for Canagold’s terrible long-term performance. Despite poor results, Canagold’s Board of Directors has increased 2021 compensation for officers and directors. The proposed stock option plan only benefits executives and the board of directors to the detriment of shareholders.
Sun Valley’s strategic plan for the new Canagold
Sun Valley’s plan is focused on delivering results that are on time and on budget. The plan is:
- Stop all discussions about royalties
- Recover this year’s drilling season and continue into 2022/23 to further increase the resource base.
- Provide the appropriate guidance and supervision to finally move the New Polaris project forward as quickly as reasonably possible by
- Call for tenders then start of a feasibility study;
It’s the next vital step necessary to move the project forward and create value for all shareholders.
- The current management has been talking about a feasibility study for 20 years but never started one and we can’t even find any indication of a timeline for it in any of their corporate presentations for the past 10 years.
- Launch the authorization process in the second quarter of 2023
- Call for tenders then start of a feasibility study;
Sun Valley’s Highly Qualified List Over Incumbent’s Poor Corporate Governance
Vote the BLUE proxy
The Sun Valley team and candidates have a plan and the resources to put Canagold on the right track.
Shareholders are encouraged to vote only BLUE power of attorney FOR Sun Valley’s three highly experienced independent candidates – Dr. Carmen Latvian, Ms. Sofia Bianchi and Mr. Andrew Trow.
Don’t wait, voting is quick and easy. Please vote well before the proxy voting deadline of Thursday, July 14, 2022 at 5 p.m. ET. If you have any questions or need assistance voting, contact Kingsdale Advisors at 1-888-213-0093 or email@example.com.
Kingsdale Advisors acts as Sun Valley’s strategic shareholder and communications advisor. Wildeboer Dellelce LLP and Crawley Mackewn Brush LLP are acting as legal advisors to Sun Valley.
About Sun Valley
Sun Valley is a private equity firm focused on the precious metals industry with holding companies and branches in the Americas, Europe and Asia. Sun Valley seeks to invest in sustainable development projects and operations with growth potential, low cash costs of production or the operational flexibility to protect against volatility in commodity markets.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to the disclosure of future conditions, courses of action and events. All statements in this press release that are not clearly historical in nature or necessarily dependent on future events are forward-looking, and use of any of the words “anticipates”, “believes”, “expects to, “intends”, “plans”, “will”, “would” and similar expressions are intended to identify forward-looking statements. These statements are based on Sun Valley’s current expectations and information currently available. Forward-looking statements are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based on assumptions about future events which may not prove to be accurate. Sun Valley undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
The information contained or referenced herein is for informational purposes only to provide Sun Valley’s views and the matters that Sun Valley believes are of concern to shareholders described herein. The information is not tailored to any specific investment objectives, financial situation, suitability or particular needs of any specific person(s) who may receive the information, and should not be construed as advice when considering the merits of an investment decision. The views expressed herein represent the views and opinions of Sun Valley, the views of which may change at any time and are based on analyzes by Sun Valley and its advisors.
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CONTACT: Daniel Henao
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KEYWORD: NORTH AMERICA CANADA
SECTOR KEYWORD: PROFESSIONAL SERVICES NATURAL RESOURCES MINES/MINERALS FINANCE
SOURCE: Sunvalley DMCC Company
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PUBLISHED: 06/29/2022 09:00/DISC: 06/29/2022 09:02