Ahead of a shareholder meeting scheduled for July 24, Alexandria Minerals Corp. "strongly" recommended shareholders vote against a dissident proposal to shake-up its board of directors, led by its recently fired CEO.
"The value of your investment in Alexandria is at risk," Alexandria Minerals said in a June 14 news release. "An unwarranted proxy fight has been initiated by disgruntled, terminated Chief Executive Officer, Eric Owens, as a retaliation mechanism."
Alexandria Minerals has said Owens sought to "illicitly" raise funds in an unapproved financing and had pursued a "flawed" exploration strategy that did not deliver on promises, including resources at its Orenada gold project in Quebec not increasing as previously guided by Owens.
But Owens, who was fired in February, denied the claims earlier in June, saying the board of directors was aware of his activities, and exploration at Orenada was a success.
In its latest release, Alexandria Minerals, which has filed a management information circular, said that if the dissidents win the July 24 vote, Owens "plans to spend more of your money to restart the failed program."
If it wins shareholder support, Alexandria Minerals' plans include a nondilutive financing and a reassessment of the exploration targets in its project portfolio. Owens and the shareholders joining his proposal represent an approximate 5% stake in the company.
Owens has said the company should keep drilling at Orenada and, to that end, should have allowed the C$21.5 million financing he was putting together to go ahead.