Business
Stop the Massive Destruction of Shareholder Value at Canagold Resources Ltd.; Sunvalley Company DMCC Calls for Change and Sets the Record Straight
VANCOUVER, British Columbia & DUBAI, United Arab Emirates / Jun 20, 2022 / Business Wire / Sunvalley Company DMCC (“Sun Valley”), a strategic and long-term focu
About this update from Canagold Resources Ltd
[{"type":"text","content":"VANCOUVER, British Columbia & DUBAI, United Arab Emirates / Jun 20, 2022 / Business Wire / Sunvalley Company DMCC (“Sun Valley”), a strategic and long-term focused investor of Canagold Resources Ltd (TSX: CCM) (“Canagold” or the “Company”), today set the record straight in response to Canagold’s press release on June 16, 2022, and announced its slate of three independent directors for election at Canagold’s annual and special meeting on Tuesday, July 19, 2022 (the “Meeting”). Sun Valley has been investing in Canagold since November 20, 2020, and currently beneficially holds 17.61% of the Company’s shares. Sun Valley has been and will continue to be deeply committed to the Company’s success for the benefit of all shareholders. We believe that Canagold’s potential has been crippled by decades of business and financial mismanagement at the hands of Mr. Bradford Cooke and other members of the board of directors (the “Board”), who are harming the Company out of a self-interest to maintain control – all at the expense of shareholders. We are not alone as other shareholders share our beliefs and back this action. Mr. Cooke Rejected Multiple Premium Financing Offers to Maintain Control of Canagold Contrary to Canagold’s claim, on June 15, 2022, Sun Valley offered the Company CAD $7.6 million in equity at a 20% premium above market price or a 60% premium on a flow-through basis. The premium is highly favourable to Canagold’s shareholders as it reduces dilution and adds support for a higher price. It would also fund the Company through the 2022 drilling season and advance the feasibility study at New Polaris, a project that has gone almost nowhere in 28 years, and enable all shareholders to benefit from the Company’s true potential. However, Canagold has rejected the funding, is refusing to discuss it further, and is protecting Mr. Cooke’s entrenchment in the Company. Rather than accepting the premium investment, Sun Valley has discovered that the Company has been pursuing a strategy that would encumber the project with a second royalty. It is important for shareholders to understand that Canagold already has a royalty on net profits at New Polaris. Adding another royalty on top of the existing royalty when the project is still in the early exploration stage would destroy shareholder value. Canagold has omitted its plans from its circ...