Cornerstone Corrects False & Misleading Statements by SolGold
October 16 2020 - 1:35PM
Cornerstone Capital Resources Inc. (“Cornerstone” or “the
Company”) (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN)
(OTC:CTNXF) rebuts certain inaccurate statements made by
SolGold plc (“SolGold”) in its October 16 news release commenting
on its failed hostile bid to acquire Cornerstone.
SolGold states in its October 16 news release
“Cornerstone may not use its interest in ENSA directly or
indirectly to secure debt funding without SolGold’s consent and
SolGold holds a pre-emptive right to approve or disapprove of any
dealings of Cornerstone in its direct or indirect interest in
ENSA.”
This is false and misleading. Pursuant to the
Cascabel Earn-in Agreement, (1) no party may grant security over or
otherwise encumber its participating interest, except
to the extent necessary to secure financing of its proportionate
share of project development; and (2) no one has a right
of first refusal (ROFR) over a sale or change of control of
Cornerstone, the listed company in Canada.
Greg Chamandy, Chairman of Cornerstone’s Board
of Directors and a holder of over 10% of the outstanding
Cornerstone common shares, said:
“Following the embarrassing hostile attempt by
SolGold, that was 100% certain to fail even before it was formally
launched, it is not a surprise that the SolGold Board continues to
repeat false and misleading statements in an attempt to hide their
incompetence. SolGold’s suspect corporate governance, self-dealing
practises and waste of significant resources simply confirm that
the SolGold Board is incapable of managing the affairs of SolGold
for the benefit of all shareholders in a prudent and transparent
manner. Cornerstone will provide an update on our intention to
requisition a general meeting of shareholders of SolGold in due
course.”
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral
exploration company with a diversified portfolio of projects in
Ecuador and Chile, including the Cascabel gold-enriched copper
porphyry joint venture in northwest Ecuador. Cornerstone has a
21.4% direct and indirect interest in Cascabel comprised of (i) a
direct 15% interest in the project financed through to completion
of a feasibility study and repayable at Libor plus 2% out of 90% of
its share of the earnings or dividends from an operation at
Cascabel, plus (ii) an indirect interest comprised of 7.6% of the
shares of joint venture partner and project operator SolGold Plc.
Exploraciones Novomining S.A. (“ENSA”), an Ecuadoran company owned
by SolGold and Cornerstone, holds 100% of the Cascabel concession.
Subject to the satisfaction of certain conditions, including
SolGold’s fully funding the project through to feasibility, SolGold
Plc will own 85% of the equity of ENSA and Cornerstone will own the
remaining 15% of ENSA.
Further information is available on
Cornerstone’s website: www.cornerstoneresources.com and on
Twitter. For investor, corporate or media inquiries, please contact
ir@cornerstoneresources.ca, or:
Investor Relations: Mario Drolet; Email: Mario@mi3.ca; Tel.
(514) 904-1333
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Cautionary Notice:This news
release may contain ‘Forward-Looking Statements’ that involve risks
and uncertainties, such as statements of Cornerstone’s beliefs,
plans, objectives, strategies, intentions and expectations. The
words “potential”, “anticipate”, “forecast”, “believe”, “estimate”,
“intend”, “trends”, “indicate”, “expect”, “may”, “should”, “could”,
“project”, “plan”, or the negative or other variations of these
words and similar expressions are intended to be among the
statements that identify ‘Forward-Looking Statements’, although not
all forward-looking statements contain these words.
Although Cornerstone believes that its expectations reflected in
these ‘Forward-Looking Statements’ are reasonable, such statements
may involve unknown risks, uncertainties and other factors
disclosed in our regulatory filings, viewed on the SEDAR website at
www.sedar.com. For us, uncertainties arise from the behaviour of
financial and metals markets, predicting natural geological
phenomena and from numerous other matters of national, regional,
and global scale, including those of an environmental, climatic,
natural, political, economic, business, competitive, or regulatory
nature. These uncertainties may cause our actual future results to
be materially different than those expressed in our Forward-Looking
Statements. Although Cornerstone believes the facts and information
contained in this news release to be as correct and current as
possible, Cornerstone does not warrant or make any representation
as to the accuracy, validity or completeness of any facts or
information contained herein and these statements should not be
relied upon as representing its views after the date of this news
release. While Cornerstone anticipates that subsequent events may
cause its views to change, it expressly disclaims any obligation to
update the Forward-Looking Statements contained herein except where
outcomes have varied materially from the original statements.
On Behalf of the Board, Brooke MacdonaldPresident and CEO
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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