Toronto, June 2, 2014 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Company") today announced that Tocqueville Asset Management, L.P. and The Tocqueville Trust (collectively, "Tocqueville") have agreed that they will not pursue the nomination of their own candidates for election to the Company's board of directors at Scorpio's 2014 annual meeting of shareholders, to be held on June 12, 2014. As a result, the Company has agreed to discontinue its recently commenced legal proceeding against Tocqueville concerning the validity of Tocqueville's intended director nominations.
"We are pleased to see Tocqueville stand down from its attempt to take control of the Company's Board at our annual meeting," said Ewan D. Mason, Chairman of the Company. "However, we cannot ignore Tocqueville's disruptive actions and we call on all of our shareholders to show their support for the positive momentum at the Company and vote in favour of our director nominees at the annual meeting."
On May 12, 2014, Tocqueville delivered to the Company a notice of its intention to nominate three new individuals for election to the Company's Board at the 2014 annual meeting, in addition to its current nominee, Thomas Weng, who is already on the Company's Board, to give Tocqueville four nominees on Scorpio's seven-member Board. The Company brought the above described legal proceeding as it believed that Tocqueville's notice did not comply with the advance notice provisions of the Company's By-Laws respecting the nomination of directors and was therefore invalid.
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Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine in the Cosalá District of Sinaloa State, Mexico, has flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a processing facility with permitted capacity for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates, with a significant payable silver component in the copper and lead concentrates.
In addition, the Company has numerous exploration targets in the vicinity of its current operations as well as the advanced El Cajón and San Rafael development projects. The Company's strategy for near-term growth is currently focused on mine development of the El Cajón deposit upon receipt of permitting.
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This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Company's operations, exploration and development plans, expansion plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects", "intends", "anticipates", or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might", or "will" "be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Scorpio Mining Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and development and operation of the Company's projects in Mexico, risks related to international operations, construction delays and cost overruns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, zinc, copper, lead and gold, risks relating to completing acquisition transactions as well as those factors discussed in the sections relating to risk factors of our business filed in Scorpio Mining Corporation's required securities filings on SEDAR, including its Annual Information Form dated March 13, 2014. Although Scorpio Mining Corporation has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scorpio Mining Corporation does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
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