Ottawa, ON, Canada: 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."
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 firstname.lastname@example.org, or:
Mario Drolet; Email: Mario@mi3.ca; Tel. (514) 904-1333
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On Behalf of the Board,
President and CEO
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