Mines Management, Inc. (NYSE Amex:MGN) (TSX:MGT) (the "Company") is pleased to announce the results of the Company's Annual Meeting of Shareholders ("Meeting") held in Spokane, Washington, on June 16
, 2011, at which the Company’s shareholders considered the following proposals:
- Proposal 1 — The Director Election Proposal: to elect two Class II directors, Mr. Glenn M. Dobbs and Mr. Roy G. Franklin, whose terms were scheduled to expire at the Meeting, for a term expiring at the 2014 annual meeting of shareholders;
- Proposal 2 — The Auditor Appointment Proposal: to ratify the appointment of the Company’s independent registered accounting firm, Tanner LC, for the fiscal year ending December 31, 2011; and
- Proposal 3 — The 2005 Warrant Proposal: to approve the issuance of a number of shares of common stock in excess of the NYSE Amex 20% limitation upon the exercise of common stock purchase warrants issued in a private placement and having a current exercise price of $2.56 per share, at the election of the holders thereof at any time or from time-to-time prior to the expiration of such warrants.
At the Meeting, shareholders elected the two director nominees and approved the Auditor Appointment and 2005 Warrant proposals. The foregoing proposals and the results of the shareholder vote thereon are described in more detail in the Company’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission (“SEC”) on April 22, 2011, and Form 8-K filed with the SEC on June 21, 2011, respectively.
Additionally, the Company reports on results from the first quarter, 2011, as follows:
First Quarter Highlights
- On April 4, 2011, the Company completed an underwritten public offering of 5,120,000 shares of common stock that yielded net proceeds of approximately $15.2 million before deducting offering expenses. The Company intends to use the net proceeds for advancement of the permitting process for its Montanore Project, the commencement of the Company’s planned delineation drilling program which will include advancement of the adit, establishment of drilling stations and commencement of exploratory drilling, and for general corporate purposes, including possible acquisition and exploration of new mining properties.
- Mine and Quarry Engineering Services, Inc. of San Mateo, California (“MQES”) finalized the Technical Report entitled “Technical Report: Preliminary Economic Assessment, Montanore Project, Montana, USA prepared for Mines Management, Inc.” dated February 3, 2011 (“PEA”), which was filed with Canadian securities regulators in accordance with Canadian National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”).
- The U.S. Forest Service (“USFS”) and the Montana Department of Environmental Quality (“MDEQ”) continued their environmental review, and are in the process of formulating responses to comments received from the public and from the Environmental Protection Agency (“EPA”) on the Draft Environmental Impact Study (“EIS”) for the Montanore Project.
- The Company continued meetings with federal and state agencies, Montana legislators, and local Lincoln County Commissioners, Libby City officials, business leaders and community members.
- The Company continued its program to reduce expenditures and conserve cash pending the completion of permitting.
- The Company sold one investment in marketable equity securities during March 2011, resulting in proceeds of $3.8 million and a realized gain of $2.0 million.
- Cash and investment position were significantly strengthened to $22.8 million at March 31, 2011.
- The Company’s exploration and corporate development team continued to examine and evaluate additional opportunities in North America and South America.
The net increase in cash and cash equivalents for the quarter ended March 31, 2011 was approximately $16.4 million. Management has reviewed the near term spending forecast and continued a plan to diligently conserve cash where prudent. Given our current cash position of approximately $22.8 million on March 31, 2011, we have sufficient funds to complete the permitting process and initiate the adit rehabilitation and drill station development. Additional financing will be required to complete the evaluation drilling program and a bankable feasibility study.