TORONTO, May 15, 2013 /CNW/ - Sprott Asset Management LP, on behalf of certain funds and managed accounts, and Concept Capital Management (CCM), directly, and along with certain affiliates, currently hold approximately 8.4% and 10.5% of the outstanding shares of Oremex Silver Inc. (TSX Venture: OAG) (Frankfurt: OSI), respectively. We note that Oremex Silver has only two directors serving on the Board of Directors. This is contrary to TSX-V policy, but more importantly, the company needs a strong board to help take it forward. Sprott Asset Management LP and CCM support the immediate appointment of three additional directors to the board of Oremex Silver, with the assumption that the current board will not amend the by-laws of the company to make the board composition more than five members.
Sprott Asset Management LP and CCM jointly invite the Chairman of Oremex Silver to immediately appoint Allan Folk, Frank Hoegel and Keith Stein new directors of Oremex Silver, pending their confirmation at the next AGM.
Allan Folk brings 30 years of resource-focused investment and capital markets experience to the board. Allan currently serves as VP/Director of Brant Securities and also as a Director of Atlanta Gold (ATG-V).
Frank Hoegel serves on the advisory board of Concept Capital Management, Oremex Silver's largest creditor through a secured convertible bond. Frank is an asset manager and financially evaluates Canadian resource companies for convertible bond financing and structures gold, silver, and copper off-take agreements. He also serves as CEO of Peter Beck Performance Fonds GbR.
Keith Stein has spent much of his career working with public companies as an executive, advisor or director. He has been involved in the resource industry as a board member, lawyer and investor.
Sprott Asset Management LP and CCM invite other shareholders of Oremex Silver to support this enhancement to the board now, and at the next Annual General Meeting of Shareholders. Many shareholders have already expressed their support given their frustration with the inability of the company to enter into a surface rights agreement for access to Oremex Silver's flagship property, Tejamen, as well as with the dividend of 14 million Oremex Gold shares declared in 2012, but never paid.
According to the terms of the September 2012 secured convertible debt financing, provided by CCM, and a small group of placees led by CCM, Oremex Silver was required to pay the legal fees to structure the financing. To date, Oremex Silver has not paid the legal fees required by the contract. CCM, as a result of this financing, holds a mortgage on the Tejamen and Chalchuhuites properties. A breach of the terms by Oremex Silver can result in seizure of the assets securing the mortgage, but CCM, along with Sprott Asset Management LP, prefers to support an initiative to take the company forward, beginning with the immediate appointment of these three board members.
SOURCE: Oremex Silver Inc. Shareholders
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