Toronto, June 2, 2014 – Scorpio Mining Corporation (TSX:
SPM) (“Scorpio” or the “Company”) today announced that
Tocqueville Asset Management, L.P. and The Tocqueville Trust (collectively,
“Tocqueville”) have agreed that they will not pursue the nomination of
their own candidates for election to the Company’s board of directors at
Scorpio’s 2014 annual meeting of shareholders, to be held on June 12, 2014. As
a result, the Company has agreed to discontinue its recently commenced legal
proceeding against Tocqueville concerning the validity of Tocqueville’s
intended director nominations.
“We are pleased to see Tocqueville stand down from its
attempt to take control of the Company’s Board at our annual meeting,”
said Ewan D. Mason, Chairman of the Company. “However, we cannot ignore
Tocqueville’s disruptive actions and we call on all of our shareholders to show
their support for the positive momentum at the Company and vote in favour of
our director nominees at the annual meeting.”
On May 12, 2014, Tocqueville delivered to the Company a
notice of its intention to nominate three new individuals for election to the
Company’s Board at the 2014 annual meeting, in addition to its current nominee,
Thomas Weng, who is already on the Company’s Board, to give Tocqueville four
nominees on Scorpio’s seven-member Board. The Company brought the above described
legal proceeding as it believed that Tocqueville’s notice did not comply with
the advance notice provisions of the Company’s By-Laws respecting the
nomination of directors and was therefore invalid.
Protect your investment
– Vote your WHITE proxy today to ensure the Company stays on
track –
Your vote is important. Support your current Board and allow
for continued progress at the Company by VOTING the Company’s WHITE proxy
before the 5:00 p.m. (Eastern Time) deadline on June 10, 2014.
If you have any questions or require assistance in voting
your WHITE proxy, please contact Kingsdale Shareholder Services at
1-855-682-9644 (toll-free in North America) or 1-416-867-2272 (collect outside
of North America) or by email at [email protected]. Agents are
standing by to assist you with voting your proxy.
About Scorpio
Scorpio Mining Corporation is a silver producer operating in
Mexico with significant base metal by-product credits. The 100% owned Nuestra
Señora Mine in the Cosalá District of Sinaloa State, Mexico, has flexible
mining methods and diversified metal production. It has a fully mechanized
underground operation and a processing facility with permitted capacity for
expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead
concentrates, with a significant payable silver component in the copper and
lead concentrates.
In addition, the Company has numerous exploration targets in
the vicinity of its current operations as well as the advanced El Cajón and San
Rafael development projects. The Company’s strategy for near-term growth is
currently focused on mine development of the El Cajón deposit upon receipt of
permitting.
For further information contact:
Victoria Vargas, Vice President Investor Relations and
Corporate Communications +1 416-585-2200
Email: [email protected]
Kingsdale Shareholder Services; 1-855-682-9644 (toll-free in
North America); 1-416 867-2272 (collect outside of North America); email:
[email protected]
Website: www.scorpiomining.com
This news release includes certain statements that may be
deemed “forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Forward-looking statements include, but are not limited
to, statements with respect to the Company’s operations, exploration and
development plans, expansion plans, estimates, expectations, forecasts,
objectives, predictions and projections of the future. Generally, these
forward-looking statements can be identified by the forward-looking terminology
such as “plans”, “expects” or “does not expect”,
“is expected”, “budget”, “scheduled”,
“estimates”, “projects”, “intends”,
“anticipates”, or “does not anticipate”, or “believes”,
or variations of such words and phrases or state that certain actions, events
or results “may”, “can”, “could”,
“would”, “might”, or “will” “be taken”,
“occur” or “be achieved”. Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of
Scorpio Mining Corporation to be materially different from those expressed or
implied by such forward-looking statements, including but not limited to: risks
related to the exploration and development and operation of the Company’s
projects in Mexico, risks related to international operations, construction
delays and cost overruns, the actual results of current exploration,
development and construction activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, future prices of
silver, zinc, copper, lead and gold, risks relating to completing acquisition
transactions as well as those factors discussed in the sections relating to
risk factors of our business filed in Scorpio Mining Corporation’s required
securities filings on SEDAR, including its Annual Information Form dated March
13, 2014. Although Scorpio Mining Corporation has attempted to identify
important factors that could cause results to differ materially from those
contained in forward-looking statements, there may be other factors that cause
results to be materially different from those anticipated, described,
estimated, assessed or intended.
There can be no assurance that any forward-looking
statements will prove accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Scorpio
Mining Corporation does not undertake to update any forward-looking statements
that are incorporated by reference herein, except in accordance with applicable
securities laws.
