TORONTO, ONTARIO -- (Marketwired) -- 06/14/13 -- Dundee Corporation (TSX: DC.A) ("Dundee"), a significant shareholder of Formation Metals Inc. ("Formation"), announced today that it no longer has confidence in the ability of Formation's management to manage the Company in a manner consistent with the best interests of Formation and its shareholders.
A letter and proxy circular urging Formation shareholders to vote for Dundee's two director nominees are available for review on-line at www.sedar.com. The letter is attached to this news release.
The letter and proxy circular highlight the current Formation Board's history of dismal share price performance and serious mismanagement. In Dundee's opinion this includes the following:
-- Imprudent and unauthorized sale of the Sunshine Refinery-- Management's self-dealing and resulting total compensation-- Lack of leadership-- Failed business strategy-- Refusal to adapt to the TSX's rule that directors be elected annually, commencing this year-- Lack of adherence to good corporate governance practices for a public company
Dundee urges shareholders to take immediate action to vote for its two highly-qualified director nominees - David Christie, P.Geo. and Paul A. Carroll, QC. In the attached letter, Ned Goodman, President and CEO of Dundee, in effect says that Dundee believes it is time to change the composition of the Board of Directors so that Formation can begin realizing on its potential and adjusting to the current reality of the mining industry. Dundee's objective is to deliver appropriate returns for all shareholders. Its two director nominees will add highly qualified directors to the Board of Directors with extensive experience in the mining industry and they will diligently supervise management and be committed to adhering to appropriate corporate governance practices.
Attention Formation Shareholders:
Please carefully read Mr. Goodman's letter and the proxy circular, and vote only your BLUE proxy. The BLUE proxy must be filed where indicated in the proxy circular by 6:00 p.m. (Pacific time) on Tuesday, June 18, 2013 so that we have time to deliver the proxy ahead of the voting deadline mandated by management. If you need help with your vote, contact Tom Germinario at D. F. King & Co., Inc. at 1-800-290-6431 (toll-free in North America) or 1-212-269-5550 (collect outside of North America), or by e-mail at firstname.lastname@example.org.
Toronto, June 13, 2013
Dear Fellow Formation Metals Shareholders:
Many of you know Dundee Corporation but, for those who might not know us, Dundee is a Canadian independent publicly traded holding company listed on the Toronto Stock Exchange ("TSX") under the symbol "DC.A" (www.dundeecorporation.com). Through its operating subsidiaries, Dundee is engaged in diverse business activities in the areas of its core competencies including investment advisory, corporate finance and private equity investment in natural resources, real estate, infrastructure, energy and agriculture. Dundee holds, directly and indirectly, a portfolio of investments mostly in these core areas, as well as other select investments in both publicly listed and private companies.