Thu Jun 30, 2011
Klondex Announces Settlement Agreement and New Proposed Board
--------------------------------------------------------------------------------
VANCOUVER, Canada, June 30, 2011 - Klondex Mines Ltd. ("Klondex" or "the Company") (TSX:KDX) today announced that the Company and The K2 Principal Fund L.P. ("K2") have entered into a Settlement Agreement that terminates their proxy dispute on mutually agreeable terms. The settlement is expected to be implemented at today's Annual General Shareholders Meeting. Both Klondex and K2 believe this settlement is in the best interests of all shareholders and allows the Company to continue with the development of the Fire Creek gold project in Nevada and build long-term shareholder value.
Under the terms of the Settlement Agreement, the Company and K2 have agreed on a new Klondex board of directors to be constituted by three representatives of the management nominees, namely Blane Wilson, Robin Goad and William Solloway, and three members of K2's slate, namely Andre Douchane, Warren Moysey and Chad Williams. As previously announced, Mr. Kenneth Stowe, the outgoing President and CEO of Northgate Minerals Corporation and a mining industry veteran with over 30 years of accomplishment, is expected to be appointed to the Board immediately after the AGM.
After 30 years of service to the Company, Mr. Solloway will step down as CEO, but remains Chairman of the Board. Mr. Wilson, the current President and COO, will be appointed President and CEO.
"We would like to thank Bill for his leadership and care over the operations of the Company for the past 30 years and look forward to his guidance at the Board level," stated Mr. Wilson.
Mr. Wilson, added, "This settlement has the full support of the Klondex board and management team and enables the Company to move forward with its strategic plans."
Mr. Solloway, stated, "We view this settlement as a positive for the future of our Company and in the best interests of its shareholders. We believe that based on our discussions with our shareholders and how their shares were voted in connection with this meeting, this agreement represents their choice. We welcome the new directors and look forward to working with them in the continued development of our Fire Creek gold project."
Mr. Solloway, continued, "The Company thanks its departing directors for their outstanding service. Brendan Donohoe, who has been a director since 2007 and been with Klondex for 30 years, will remain as Treasurer of the Company. Ronald Shorr, who has been a director since 2007, and Richard Kern, a director since 2010, have both made outstanding contributions in advancing the Company and, on behalf of Klondex, I thank them for their service."
Investor Contacts:
Bryson Goodwin
Klondex Mines Ltd.
brysongoodwin@shaw.ca
(604) 341-1531
Norberto Aja, David Collins
Jaffoni & Collins
KDX@jcir.com
(212) 835-8500
You can view the Previous News item: Wed Jun 29, 2011, Klondex Waives Deadline for Submitting Proxies
http://www.klondexmines.com/s/News.asp?ReportID=465124&_Type=News&_Title=Klondex-Announces-Settlement-Agreement-and-New-Proposed-Board
