Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, June 9, 2015 /CNW/ - Copper Mountain
Mining Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") confirms that Montrsuco Bolton of Montreal, Quebec, has submitted six proposals
for consideration at the upcoming 2015 annual general meeting of
the Company which are disclosed in the Company`s information
circular. These proposals were received as thoughtful input
by a shareholder and were reviewed and discussed by the Company's
Board, of which 5 out of 7 or 71 percent are independent
directors. Management subsequently met again with Montrusco
Bolton to convey the Board`s considerations and recommendation that
the Directors believe that not all of the proposals were
appropriate for a company of Copper Mountains'
size.
For the reasons below, and as outlined in the Company's
information circular, the Company can only support one of the
proposals put forward by Montrusco Bolton and is recommending
against the remaining five. For a more detailed discussion of
the Company`s position on the individual proposals, please see the
Company's information circular that is filed on SEDAR.
The proposals put forward are:
Montrusco Bolton's
Proposal
|
Company's
Position
|
1. Appointment of
Lead Director
|
Recommend Vote
Against
|
2. Advisory Vote
on Executive Compensation ("Say on Pay")
|
Recommend Vote
Against
|
3. Clawback
Proposal
|
Recommend Vote
For
|
4. Disclosure of
Key Performance Metrics
|
Recommend Vote
Against
|
5. Use of Key
Performance Metrics
|
Recommend Vote
Against
|
6. Dilution
Safeguard Proposal
|
Recommend Vote
Against
|
In the Company's pursuit to deliver sustainable long-term value,
the Board is unequivocally supportive of the establishment and
maintenance of high standards of governance and appropriate
policies and programs which assures the alignment of management's
behaviour with the interests of its shareholders. The Board views
this as an essential business practice and has always sought to
focus the Company's strategy, actions and compensation structure on
long-term growth and sustainable value creation.
The Company's Board is concerned with many aspects of the
proposals in that they, among other things, appear to:
- have been prepared without reference to the Corporation's
record of outstanding disclosure and legal compliance;
- ignore the disciplined capital management approach fostered by
the Board and management of the Company;
- attempt to impose US governance rules out of context that would
put the Company at a competitive disadvantage to its peers;
- attempt to fetter the discretion of the Board and management to
operate the business in the best interests of all shareholders;
and
- ignore the careful and conservative compensation practises
followed by the Company, focusing on key performance indicators
that may not be applicable to a mining company.
The Board encourages all of the Company's shareholders to review
in detail the full analysis of the proposals set out in the
Company's information circular. Management of the Company
believes that the Corporate Governance Policies and practices are
consistent with the Policy's and practices of TSX listed companies
of the size and stage of development of Copper Mountain and that
current corporate government procedures and policies have in no way
impeded the Company's growth nor its performance.
The fundamental business of the Company has grown significantly
over the past year: the Company achieved record copper
production of 81 million pounds during 2014, a 22% increase over
2013; cash flow from operations was $47.2
million or $0.40 per share
during 2014, an increase of 48% over the previous year; adjusted
EBITDA was $78.8 million during 2014,
an increase of 35% over the previous year; mill capacity has
improved with the addition of the secondary crusher and the mill is
now operating above its design capacity of 35,000 tpd; and has paid
back approximately US$75 million in
debt and interest payments on the Company's very attractive debt
arrangements.
Jim O'Rourke, President and CEO
of Copper Mountain, remarked, "Copper
Mountain became a public company in 2007 as a junior mining company
and has since financed and developed a major copper mine in
BC. This $450 million mine was
developed on schedule and within the cost budget. A strategic
partner assisted to allow 75 percent attractive debt financing
which provided minimal shareholder dilution. More recently we
added a $40 million secondary crusher
to increase capacity by 35 percent and again, on schedule and
within budget."
Mr. O`Rourke went on to say, "Currently, the company has 119
million shares issued which demonstrate our prudent capital
management. Management and the Directors own about 6 percent
of the shares and are very committed to operate the company in the
best interests of all shareholders. Our Company is in the
resource business and our share price tracks along the global
economic conditions and more precisely, the open metals prices. We
are confident our Corporate Governance policies and practices and
compensation policies and practices are well in line with our peer
groups in the mining industry. Our Board of Directors are
experienced professionals active in the affairs of the Company and
very conscious of improving shareholder value while ensuring their
fiduciary responsibilities to the Company. We welcome a fully
engaged AGM with our shareholders."
About Copper Mountain Mining Corporation:
Copper
Mountain's flagship asset is the 75% owned Copper Mountain mine
located in southern British
Columbia near the town of Princeton. The Company has a strategic
alliance with Mitsubishi Materials Corporation who owns the
remaining 25%. The Copper Mountain mine commenced production in the
latter half of 2011, and has continued to improve its operations.
The key development for 2014 was the installation of the secondary
crusher as a permanent solution to maximize concentrator throughput
and improve overall efficiencies for the company. Secondary
crusher construction was completed by the end of July 2014 on budget and on schedule. The 18,000
acre site has a large resource of copper that remains open
laterally and at depth. The mine has significant exploration
potential that will need to be explored over the next few years to
fully appreciate the property's full development potential.
Additional information is available on the Company's web page at
www.CuMtn.com.
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
"Rod Shier"
Rodney A Shier, CA
Chief Financial Officer
Note: This release contains forward-looking statements
that involve risks and uncertainties. These statements may
differ materially from actual future events or results.
Readers are referred to the documents, filed by the Company on
SEDAR at www.sedar.com, specifically the most recent reports which
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking
statements. The Company undertakes no obligation to review or
confirm analysts' expectations or estimates or to release publicly
any revisions to any forward-looking statement.
SOURCE Copper Mountain Mining Corporation