IKN

Win us with honest trifles

Belo Sun (BSX.to): And we wudda gotten away with it too…

…if it weren’t for you pesky kids and that dawg. Ahh, here’s one of those small victory moments. I know they don’t dent much into the great scheme of things, but it’s nice to have made a difference somewhere along the line. 
You may remember this post dated June 4th entitled, “Belo Sun (BSX.to) is the poster child for everything that’s wrong in Canadian junior mining”, which explained what the BSX board was quietly trying to push through in its upcoming AGM? It went on a bit, but here’s how the summing-up came at the end:
  • The BSX cronies get paid a crazy amount of money in the first place.

  • For at least five years (and arguably longer) they have done nothing
    to move their project forward, but still cut themselves fat cheques.

  • But now, if they are fired for doing a bad job they get fat bonuses

  • And even if the shareholders of the company (i.e. the real owners)
    boot them out, this is now considered a “change of control” event and
    they still get an obscene payola.
Cut to today and this little piece of wonderful. Here’s the main bit of the NR, your humble scribe adding a bit of dark ink:

TORONTO, June 26, 2019 (GLOBE NEWSWIRE) — Belo Sun Mining Corp.
(“Belo Sun” or the “Company”) (TSX: BSX) announces that it has entered
into a cooperation agreement (the “Agreement”) with Sun Valley Gold LLC
and Sun Valley Gold Master Fund, Ltd. (together “Sun Valley”) pursuant
to which Belo Sun and Sun Valley, among other things, agree to work
together to identify three new independent directors to appoint to the
Company’s board following the Belo Sun annual shareholder meeting
scheduled for June 28, 2019.
  Upon the appointment of the new director
nominees, two Belo Sun directors will agree to step down from their
respective roles on the board to allow room for the new directors. 
Following these changes, the Belo Sun board will consist of a total of
six directors. 



“We are pleased to have entered into a cooperation agreement with our largest shareholder that is both responsive to their views and allows management to focus on advancing
the Company’s Volta Grande project in Brazil,” said Peter Tagliamonte
President and CEO. “We look forward to having Sun Valley continue as a
long-term, supportive shareholder of the Company.” 

Pursuant
to the Agreement, Sun Valley has agreed to vote all of the common
shares of Belo Sun within its control in favour
of the nominees
recommended by the Company at the upcoming shareholder meeting through
to the 2020 annual general meeting of shareholders of Belo Sun.
 


In other words, Sun Valley threatened BSX with activist voting if BSX didn’t do something about this scandalous one-way street of benefits to the cozy Bharti gang. But more importantly, those self-serving wastes of time don’t have unfettered control any more. 
One point scored by IKN. The game continues.
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