VANCOUVER, British Columbia, Dec. 13, 2012 /PRNewswire/ -- St. Elias Mines (TSX-V: SLI) (U.S. Clearing Symbol: SELSF) (Frankfurt Exchange: EKL) today responded to a dissidents' circular issued by Gilby Len Hastman and Darcy Kim Hastman. Based on a preliminary assessment, St. Elias believes the dissidents' disclosure is inadequate and that the dissident nominees do not deserve shareholder support.
St. Elias believes that the biographies in the dissident circular confirm that none of the five dissident nominees should be elected to the Board. Four of the five do not have mineral exploration, corporate finance or public markets experience. This alone should be enough to alarm shareholders but there are even more serious issues with the fifth dissident nominee, James Rainbird, a reprimanded financial salesperson.
The dissidents want Mr. Rainbird on the St. Elias Board despite his admitted past misconduct. As disclosed in the dissidents circular, as a result of his transgression the Mutual Fund Dealers Association of Canada (MFDA) in 2010 not only reprimanded him but also prohibited him for five years from acting in a supervisory capacity for any MFDA members.
However, the dissidents failed to disclose the nature of Mr. Rainbird's misconduct, which involved hundreds of victims, millions of dollars and flagrant breaches of securities laws over a period of four years. This omission is very misleading. Only with a full description of the transgression can shareholders begin to understand the depths of the problems that St. Elias may face under the control of the dissidents."Shareholders should be concerned," said Lori McClenahan, President and CEO of St. Elias Mines. "The details of Mr. Rainbird's infraction suggest that he is not capable of identifying and managing risk and may not act in the best interests of St. Elias shareholders. Even worse is the failure by the dissidents to disclose these details. This must be corrected immediately. What else are the dissidents hiding? And what does this say about the dissidents' likely conduct if they were on the St. Elias board?" Continued Ms. McClenahan, "The dissidents have not provided any details of how they intend to advance St. Elias' portfolio of high potential properties, nor do they have proposed a management team to operate St. Elias or the ability to raise capital. The combination of inadequate disclosure, lack of plans and inexperience means that the dissidents do not deserve shareholders' support."