Announce Experienced New Slate of Directors for Election
VANCOUVER, Aug. 19 /CNW/ - Shareholders of Chariot Resources Limited
(TSX: CHD) ("Chariot") are being asked to protect their investments in Chariot
by electing a new Board of Directors at the Company's Annual General and
Special Meeting, to be held on September 4, 2009.
Lukas Lundin and Brian Edgar, concerned shareholders of Chariot (the
"Concerned Shareholders"), are calling for Chariot's shareholders to replace
the current Board, who they believe has failed to progress Chariot's Mina
Justa/Marcona Project (the "Project") in Peru, leading to a consistent
undervaluation of Chariot by the market.
Mr. Lundin commented: "With copper prices on the rise, the time to act is
now. We cannot stand to miss another opportunity to improve the market's
valuation of our company. Shareholders cannot afford to let current management
remain in control and potentially miss what appears to be the start of another
period of relatively high copper prices. The timely development of the Project
is integral to creating shareholder value."
The Mina Justa/Marcona Project is a premium copper project and is
described by Chariot as "one of the world's premier advanced stage copper
projects". Yet, over the last five years, while the price of copper has
increased by over 115% and the share prices of Chariot's peer group of
companies increased by 127%, Chariot's share price has increased by only 8%.
Moreover, despite having sufficient funds and plenty of time, the current
management team has been unable to advance the Marcona Copper Project to even
the bankable feasibility stage, let alone development.
The Concerned Shareholders believe that Chariot's shareholders have been
deprived of an opportunity to realize substantial gains from their investments
in Chariot because the company has suffered from an entrenched and ineffective
management team. According to the most recent Management Information Circular
filed by Chariot, the current Board holds less than 1% of Chariot's
outstanding shares, demonstrating that their interests are clearly not aligned
with those of shareholders.
To revitalize Chariot, the Concerned Shareholders have nominated Mr.
Colin Benner, Mr. Donald Charter, Mr. Richard Clark, Mr. Brian Edgar, Mr.
Lukas Lundin and Mr. Wojtek Wodzicki for election to Chariot's Board. These
nominees bring deep and varied experience as senior managers, directors and/or
chairmen of mining companies to Chariot. The nominee directors have a solid
track record of strong performance and above all, an action plan to correct
Chariot's current course.
The Concerned Shareholders' nominees' plan for reversing Chariot's
- assembling a world class technical team to review the current
feasibility study and to determine the true status of all aspects of
- the retention of a world class management in Peru;
- development of a technical plan with a timeline to advance the
Marcona Copper Project to bankable feasibility study stage as soon as
- strengthening and improving relationships with regional and national
government officials, adjacent land owners, and port operators to
achieve the synergies and cost savings outlined in the recently
published Feasibility Study to allow more rapid project development;
- addressing the clear investor relations deficiencies of Chariot by
leveraging the very strong relationships that members of the nominees
have developed in the investment community in Canada and
internationally through their vast experience with the Lundin Group
companies and, more importantly, through their demonstrated record of
success with these companies. There will be a new focus on mining
analyst coverage and improved investor relations, especially with
institutional shareholders. There will be a new focus on transparency
and regular, credible reporting of factual information from the
Project that demonstrates real and meaningful progress to achieve a
bankable feasibility in the shortest possible time.
Should the Concerned Shareholders succeed in the election of their
proposed nominees, Mr. Lucas Lundin has personally made a commitment to bring
all his resources to bear to see that that the Marcona Copper Project gets the
attention of the finest technical people and consultants available to bring
the Project, as rapidly as possible, to bankable feasibility and, if
warranted, to production, for the benefit of all of its shareholders.
The Concerned Shareholders filed today a Dissident Proxy Circular with
securities regulators that will be mailed to all Chariot shareholders along
with a BLUE form of proxy to be used to vote to replace the Board at the
Annual General and Special Meeting on September 4, 2009. The Dissident Proxy
Circular will be available shortly at www.sedar.com.
Chariot shareholders are invited to learn more about the need to replace
Chariot's Board of Directors with a new slate of experienced and independent
directors by reviewing the Dissident Proxy Circular. They are encouraged to
vote promptly before the voting deadline on September 1, 2009 to ensure their
shares are counted at the Meeting.
For further information:
For further information: Kingsdale Shareholder Services Inc., The
Exchange Tower, 130 King Street West, Suite 2950, P.O. Box 361, Toronto,
Ontario, M5X 1E2, North American Toll Free Phone: 1-888-518-6832, Outside
North America, Banks and Brokers Call Collect: (416) 867-2272, Email: