Virgin Metals Inc. - A Letter to Shareholders

About this update from Minera Alamos Inc.

[{"type":"text","content":"\n\n\n\nTSX\nSymbol: VGM\n\n\nTORONTO, July 17 /CNW Telbec/ -\n\n\nDear Shareholders,\n\n\nYesterday a Dissident Circular was filed on SEDAR in preparation for next\nweek's adjourned annual and special meeting. A dissident group of shareholders\nis seeking to replace the Board of Directors. I would like to comment on some\nof the issues raised (and not raised) in that circular.\n\n\nFirstly, the Dissident Circular does not give any reasons for replacing\nthe board, does not state any future plans for the company and fails to\naddress who is going to manage the company in the event the Dissident\nShareholders manage to replace the Board of Directors. One might expect a\ncogent, closely argued logic as to what added value the dissident slate of\ndirectors brings to the company and all other shareholders. Apart from a\nnumber of largely irrelevant comments about the independence of one board\nmember and a completely erroneous summary of the role of our CFO, the\nDissident Circular lays out no grounds whatsoever for replacement of the\ncurrent Board.\n\n\nI would like to share with you how Mr. Lucas Ewart (defined in the\nDissident Circular as "the Dissident Shareholder") came to control the large\nblock of shares that he does (or did at the record date). During May 2009, the\nCompany received several offers of financing for the Company. The Company made\nthe determination to accept the offer of GC-Global Capital Corp. ("GGCC") for\nthree main reasons:\n\n\n(1) GGCC advised the Company that the financing would be completed\n quickly, which occurred; and\n(2) GGCC represented to the Company that this initial financing, which\n was being done at a low price compared to the historical trading\n range of the Company's shares, would be a precursor to discussing\n future financings, including a convertible debenture financing.\n(3) It was the best serious offer that had been received.\n\n\nUnfortunately no such further financing discussions between GGCC and the\nCompany have ever occurred. GGCC requested a seat on the Board of Directors of\nthe Company as a condition of the financing. The Company was happy to\naccommodate this request and as a result included GGCC's nominee, Lucas Ewart,\non the proposed slate of directors in the Management Information Circular of\nthe Company dated May 26, 2009.\n\n\nAs described in a...

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