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Every why hath a wherefore

What London analyst firm SP Angel thinks of Minera IRL (IRL.to) (MIRL.L)

This out this morning. My thanks to reader AW for the headsup. Original link here

Minera IRL (MIRL LN) SUSPENDED – VOTE FOR EGM resolution to replace directors of Minera IRL
  • It
    is rare that as analyst we offer advice on the voting of EGM
    resolutions.  It is even rarer that we should offer this advice so
    publicly.
  • We
    have considered statements made by the company Minera IRL (London) and
    Minera IRL SA (Peru) a subsidiary of Minera IRL in London. 
  • Minera
    IRL SA (Peru) are proposing to replace the board of Minera IRL (London)
    with a set of new directors – we agree with their strategy and with
    believe this is in shareholders’ best interests.
  • A
    former ceo, Daryl Hodges, was recently ousted in a shareholder vote –
    we believe shareholders cast their votes correctly in this move.
  • Minera IRL (London) are trying to sack Diego Benavides, a founder of the company alongside the late Courtney Chamberlain.
  • The
    board are going through a legal process in Peru to sack Mr Benavides on
    undisclosed evidence from a ‘whistle-blowers’ hotline in Peru – we
    believe this is the wrong thing to do as we see Diego Benavides as a
    dedicated, loyal and critically important character in the running of
    the mining operation in Peru and important in terms of community
    relations.
  • We see the Corihuarmi gold mine and Ollachea gold project as valuable assets which the company should maintain and progress. 
  • We do not see the actions of the Minera IRL (London) board as indicating the best strategy for building shareholder value.
  • We
    suspect the board may be happy to allow the default and closure of the
    Corihuarmi gold mine and the potential sale of the Ollachea gold project
    which we do not see as being in shareholders’ best interests. 
  • We view the posting of the ‘Notice of EGM and Posting of Circular’ in an RNS on Friday afternoon in the UK at 2.30pm as designed for investors to miss this announcement.
  • We
    see the holding of the EGM in Toronto as being contrary to the
    interests of many UK based shareholders who might wish the EGM to take
    place in London.
  • Votes must be cast and received by Computershare in Jersey by 24 November for UK shareholders.
  • Minera IRL (London) has published information in Friday’s circular in an attempt to discredit Mr Lema and Mr Jorge Ramos who are proposed as directors of Minera IRL (London) board.
Conclusion:  We
believe Minera IRL shareholders should support Diego Benavides and the
new proposed directors in the EGM vote to reconstitute the board.
*
SP Angel analysts are expressing their own views and opinions in this
analysis.  SP Angel has no corporate connection with Minera IRL or its
subsidiaries.  SP Angel holds no shares in Minera IRL and does not have
any current financial arrangements with the company.

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