TORONTO, ONTARIO -- (Marketwire) -- 06/13/11 -- The Concerned Shareholders of Klondex Mines Limited ("Klondex"), The K2 Principal Fund L.P., owning approximately 8% of the issued and outstanding shares of Klondex, announce today that they are mailing and have filed a concerned shareholder information circular.
The Concerned Shareholders have serious reservations about Klondex's ability to create value for shareholders as a result of its poor corporate governance and the current Board's lack of adequate mine development experience. In addition, the current Board has frustrated merger and acquisition attempts, exposed the company to undue financial risk and rewarded itself handsomely.
Independent third parties like Institutional Shareholder Services ("ISS") and Glass Lewis & Co. ("GL"), the leading international corporate governance analysis and proxy voting firms, have repeatedly censured Klondex for serious and continuing corporate governance deficiencies and recommended that shareholders withhold their votes for 5 out of 6 nominees who remain on Management's 2011 director slate. Clearly, it is time for a change.
"We have proposed an independent and experienced board, which is poised to maximize shareholder value. Supporting our proposed director slate will enable Klondex to move to the next stage of development with a board that has the required technical and financial experience," stated David Heden, Managing Partner, K2 & Associates Investment Management Inc.
The Concerned Shareholders will hold an Investor Conference Call on Wednesday, June 15, 2011 at 11:00 a.m. (Toronto time). We encourage those who would like to participate in this Investor Conference Call to dial in 5-10 minutes prior to the start time.
Dial-In Number: Canada & USA Toll Free: 1-800-319-4610
Outside Canada & USA Call: 1-604-638-5340
Simply ask the operator to join our call.
For those unable to participate in the Investor Conference Call, a replay will be available for audio playback at 1:00 p.m. (Toronto time) on Wednesday, June 15, 2011 and will run through midnight (Toronto time) on June 28, 2011.
The number to access the Investor Conference Call replay is Canada & USA Toll Free: 1-800-319-6413 or 1-604-638-9010. The passcode for the replay is 4832. A replay of the call will also be available at https://services.choruscall.com/links/klondex110615.html.
Shareholders are asked to vote their YELLOW form of proxy today FOR the Concerned Shareholders nominees and enable them to maximize shareholder value, strengthen corporate governance and enhance Klondex's technical and financial expertise.
The Concerned Shareholders have retained Norton Rose OR LLP as legal counsel and Kingsdale Shareholder Services Inc. to assist them with proxy solicitation.
It is important that shareholders vote their YELLOW proxy before the proxy deadline at 11:00 a.m. (Toronto time) on June 28, 2011. Shareholders who require assistance voting their YELLOW proxy should contact: Kingsdale Shareholder Services Inc. at 1-866-879-7649 or email contactus@kingsdaleshareholder.com.
Contacts:
Shareholders Please Contact:
Kingsdale Shareholder Services Inc.
1-866-879-7649
contactus@kingsdaleshareholder.com
Media Contact:
Kingsdale Communications Inc.
Beverly Brooks
1-416-867-2304
bbrooks@kingsdalecommunications.com
