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Resolute Performance Fund Highlights Ongoing Operational Issues at Wesdome Gold Mines
Resolute Performance Fund Highlights Ongoing Operational Issues at Wesdome Gold Mines ...
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":"\n\n\n\nResolute Performance Fund Highlights Ongoing Operational Issues at Wesdome Gold Mines\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nResolute Performance Fund Highlights Ongoing Operational Issues at Wesdome Gold Mines\nCanada NewsWire\nTORONTO, June 9, 2016\n\n\n\nCALLS FOR INDEPENDENT OPERATIONAL REVIEW\n\n\n\nTORONTO, June 9, 2016 /CNW/ - Resolute Performance Fund (\"Resolute\" or \"we\"), an investment fund managed by Resolute Funds Limited, the largest shareholder of Wesdome Gold Mines Ltd. (TSX: WDO) (\"Wesdome\" or the \"Corporation\"), today calls on Wesdome to commission an independent review to assess the Corporation's mining operations and to develop concrete solutions to address the operational issues plaguing the Corporation.  \n\nResolute is the largest shareholder of Wesdome, holding 33,350,000 shares or approximately 25.7% of the outstanding shares. We are a long-term investor, having made our initial investment in Wesdome in April 2010. Over the past six years Resolute has been a huge supporter of the Corporation and our interest is, and has always been, to maximize shareholder value. We are a patient investor, but our patience has been stretched to the limit by Wesdome's failure to address its ongoing operational issues. \n\nIn its press releases and management proxy circular, Wesdome is trying to deflect attention from its operational issues and make Resolute, our investment manager Thomas Stanley, and the Corporation's independent director Rostislav Raykov the issue. Do not be misdirected.  \n\nThe real issue is the operations of Wesdome. Over the last five quarters, operational results have been poor and are deteriorating. In 2015, Wesdome lost $0.04 per share compared to a profit of $0.11 per share in 2014. Gold production in 2015 dropped to 50,470 oz from 52,757 oz in 2014. This year has started off significantly worse. Gold production dropped to only 8,036 oz in the first quarter of 2016. At the same time, the Corporation's cash burn was $7.3 million. All-in sustaining costs h...