Robex Vigorously Opposes the Unfounded Demand of Some of Its Minority Shareholders
QUEBEC CITY, Oct. 09, 2020 - Robex Resources Inc. (“Robex” or the “Company”) (TSXV: RBX/FWB: RB4) has been informed of the filing of an application for relief orders in the Quebec Superior Court by a very small group of minority shareholders. The allegations contained therein against the Company, its directors, officers and the Cohen family are unfounded and untrue. Robex intends to vigorously challenge the claim and set the record straight under the applicable procedure.
The Company follows the applicable rules of good governance and has made sure to maintain within its board of directors and its various committees a sufficient number and the active participation of experienced independent directors.
The Company, through its board of directors, independent directors and officers, has always acted in the best interests of the Company and all of its shareholders. At the last shareholders’ meeting held on June 26, 2020, the directors were re-elected with over 97.6% of the votes cast.
All financing completed by the Company since the arrival in its administration of the Cohen family in 2013 has been made in accordance with securities regulations and in a way that is respectful of minority shareholders. Among other things, any material element that needed to be brought to the attention of shareholders has been disclosed in a timely and complete manner without any objection from the shareholders at the time.
The Company considers the compensation of the Company’s management team to be comparable to that of companies of similar size and scope. Moreover, during the 2019 financial year, in addition to the analyses performed by its independent directors, the Company called on an independent specialist company to carry out an analysis of the Company’s compensation practices. It concluded that the compensation was in line with industry standards.
Robex points out that it has been able to count on funding from the Cohen family at critical times to keep it going, even when the price of gold has been at historic lows over the past decade and the stock markets were unfavourable to the mining sector in general.
It should also be remembered that, at the start, the Nampala mine in Mali, which constitutes the Company’s main asset, was considered to be a deposit of insufficient quality and quantity of very low grade, endowed with basic facilities, with high financing needs, and that Mali was a country at war, weakened by political tensions and then by the emergence of Ebola.
Since then, the Nampala mine has moved from exploration to production – it is now operating profitably and its operating costs are among the most competitive in the world.
The Company’s work and efforts have resulted in creating value for all shareholders. Moreover, since the beginning of 2020, the Company has declared payment of dividends of $0.06 per share, which represents a dividend yield of 12% on the share price as of September 24, 2020, valued at $0.50, while the share value was $0.15 as of January 3, 2020.
After investing more than $70 million in the development and commissioning of the Nampala mine under favourable conditions for the Company, the Company has since proceeded to almost fully repay its debts and it is now today one of the healthiest operations in the industry.
The Company does not intend to comment further on the ongoing legal proceedings.
Robex Resources Inc. is a Canadian mining company operating in gold production and exploration in West Africa. The Company operates the Nampala mine in Mali, which reached the commercial production stage on January 1, 2017.
Benjamin Cohen, CEO
Augustin Rousselet, CFO/COO
Head office: (581) 741-7421
This news release contains statements that may be considered “forecast information” or “forecast statements” in terms of security rights. These forecasts are subject to uncertainties and risks, some of which are beyond the control of Robex. Achievements and final results may differ significantly from forecasts made implicitly or explicitly. These differences can be attributed to many factors, including market volatility, the impact of the exchange rate and interest rate fluctuations, mispricing, the environment (hardening of regulations), unforeseen geological situations, unfavourable operating conditions, political risks inherent in mining in developing countries, changes in government policies or regulations (laws and policies), an inability to obtain necessary permits and approvals from government agencies, or any other risk associated with mining and development. There can be no assurance that the circumstances set out in these forecasts will occur, or even benefit Robex, if any. The forecasts are based on the estimates and opinions of the Robex management team at the time of publication. Robex makes no commitment to make any updates or changes to these publicly available forecasts based on new information or events, or for any other reason, except as required by applicable security laws. The TSX Venture Exchange or the Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) assumes no responsibility for the authenticity or accuracy of this news release.