Klondex Announces Settlement Agreement and New Proposed Board
Klondex Mines Ltd. ('Klondex? or 'the Company?) (TSX:KDX) today
announced that the Company and The K2 Principal Fund L.P. ('K2?) have
entered into a Settlement Agreement that terminates their proxy dispute
on mutually agreeable terms. The settlement is expected to be
implemented at today′s Annual General Shareholders Meeting. Both Klondex
and K2 believe this settlement is in the best interests of all
shareholders and allows the Company to continue with the development of
the Fire Creek gold project in Nevada and build long-term shareholder
value.
Under the terms of the Settlement Agreement, the Company and K2 have
agreed on a new Klondex board of directors to be constituted by three
representatives of the management nominees, namely Blane Wilson, Robin
Goad and William Solloway, and three members of K2's slate, namely Andre
Douchane, Warren Moysey and Chad Williams. As previously announced, Mr.
Kenneth Stowe, the outgoing President and CEO of Northgate Minerals
Corporation and a mining industry veteran with over 30 years of
accomplishment, is expected to be appointed to the Board immediately
after the AGM.
After 30 years of service to the Company, Mr. Solloway will step down as
CEO, but remains Chairman of the Board. Mr. Wilson, the current
President and COO, will be appointed President and CEO.
'We would like to thank Bill for his leadership and care over the
operations of the Company for the past 30 years and look forward to his
guidance at the Board level,? stated Mr. Wilson.
Mr. Wilson, added, 'This settlement has the full support of the Klondex
board and management team and enables the Company to move forward with
its strategic plans.?
Mr. Solloway, stated, 'We view this settlement as a positive for the
future of our Company and in the best interests of its shareholders. We
believe that based on our discussions with our shareholders and how
their shares were voted in connection with this meeting, this agreement
represents their choice. We welcome the new directors and look forward
to working with them in the continued development of our Fire Creek gold
project.?
Mr. Solloway, continued, 'The Company thanks its departing directors for
their outstanding service. Brendan Donohoe, who has been a director
since 2007 and been with Klondex for 30 years, will remain as Treasurer
of the Company. Ronald Shorr, who has been a director since 2007, and
Richard Kern, a director since 2010, have both made outstanding
contributions in advancing the Company and, on behalf of Klondex, I
thank them for their service.?
Klondex Mines Ltd.
Bryson Goodwin, 604-341-1531
brysongoodwin@shaw.ca
or
Jaffoni
& Collins
Norberto Aja, David Collins
212-835-8500
KDX@jcir.com