Orefinders CEO Letter to Shareholders & AGM Details
Toronto, Ontario – May 13, 2019 – Orefinders Resources Inc. (“Orefinders” or the “Company”) (TSX.V: ORX) is pleased to release its 2019 Annual Shareholder Letter from the CEO sent to all shareholders as a part of the Company’s annual meeting materials.
In a highly cyclical industry like mining, the best time to make acquisitions is when the cycle is at the bottom. That’s where the market has been and that’s the philosophy which Orefinders has executed.
Over the past 12 months, Orefinders has significantly increased its portfolio of assets by accumulating projects at an advanced stage, with established mineral resources in strategic land positions. All of these projects share synergies based on proximity to each other within the Kirkland Lake / Shining Tree districts of the Abitibi. I see our McGarry, Barber Larder, Mirado and Knight projects as the next generation of mines in the Abitibi. Like all development assets, they require investment via the drill bit to not just extend the known resources but also to offer the optionality of a game changing discovery by drilling in world class gold systems like the Cadillac-Larder Lake Break.
Since closing on these acquisitions, our team has been preparing to invest in our projects. Too often our competitors rush to the drill bit to appease the demands of the short term investors. We have resisted such pressures, remained patient and completed the required homework. We believe this is a pragmatic approach to sound investing. Such a strategy may not suit day traders, but we manage Orefinders with the understanding that resource development requires a long-term approach.
We are confident with the state of the union of our assets and our capital investment strategy going forward. I also feel that, finally, the underlying fundamentals of the markets have begun the shift to where exploration results may soon start to receive value on a per share basis. Therefore, while we remain on the lookout for accretive and strategic additions to our portfolio, the next 12 months will see us putting boots on the ground to actively explore, drill and expand our own resource base.
Furthermore, a forward view of our current resource base gives us confidence that we will have the critical mass to justify considering our own milling and tailings operations, giving us control over our own destiny and providing us optionality in our corporate decisions. Each of our assets fit within a hub and spoke model where we can build a centralized mill on McGarry given that it already hosts a large tailings facility. The Mirado toll milling plan, as outlined in the Mirado PEA, remains a priority but counterparty risk has been the obstacle which has led us to develop our own path forward.
In the background, there’s always the opportunity for mergers and acquisitions whereby Orefinders becomes the target. This is never lost on us as we believe exploration and development companies are best suited as takeout candidates rather than mine builders. However, in this market we are still buyers and not sellers, and we won’t rely on a single strategy whose outcome is in the hands of a counterparty.
Marketable Security Assets
Over and above our project acquisitions we’ve added to our marketable securities portfolio with the Mistango River Resources, Power Ore and Pacific Precious transactions. Orefinders is now a significant shareholder in each. With Power Ore we successfully distributed to Orefinders shareholders shares as a dividend and to our knowledge, few, if any juniors have successfully issued shareholder dividends. Power Ore has now acquired an exceptional copper project and I believe its shareholders, including Orefinders, can expect per share growth in the near term. With Pacific Precious, our plan is to replicate the Power Ore Share Dividend Distribution model with a portion of our shares going directly to Orefinders shareholders and the balance being kept in treasury to assist in our liquidity and investment in our physical properties. Transactions like these are a testament to our team who’ve manufactured creative opportunities designed to add value on a per share basis and diversify Orefinders’ portfolio.
In addition to this letter and the standard documents required for the annual general meeting, we have included Orefinders’ Investment Thesis which clearly details our view of the market and our strategy to create value for our shareholders.
I, and our management team, would appreciate your support by voting FOR the matters set out in the Notice of Meeting and the accompanying Management Information Circular.
Chief Executive Officer
Orefinders Resources Inc.
Orefinders Annual General Meeting Details
Orefinders would like to remind shareholders of the Company’s Annual General Meeting (“AGM”) on May 17 at 10am EDT at 55 University Avenue, Suite 1805 in Toronto, Canada. Management encourages shareholders to review annual reports and proxy materials which have been mailed, including the Annual Shareholder Letter from the CEO below and the Orefinders Investment Thesis. Additionally, all information pertaining to the AGM is posted on www.sedar.com.
About Orefinders Resources Inc.
Orefinders is a Gold exploration and development company focused primarily within the Abitibi Greenstone Belt. The Company is listed on the Toronto Venture Exchange under the symbol ORX.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Orefinders’ assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Orefinders. Additional information identifying risks and uncertainties is contained in filings by Orefinders with Canadian securities regulators, which filings are available under Orefinders’ profile at www.sedar.com.
For the latest updates please contact or follow us on Twitter @OrefindersR
To Speak to the Company directly, please contact:
Stephen Stewart, Chief Executive Officer