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News Releases
| | November 04, 2005
Sterling Mining Announces Cancelled November 2 Special Meeting is Re-Scheduled for December 21, 2005
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| | Wallace Idaho, November 04, 2005 - (BUSINESS WIRE) - Sterling Mining Company (OTC:SRLM) announced today that the District Court of the First Judicial District of the State of Idaho ordered on November 1 that the Special Shareholders Meeting scheduled for November 2 be cancelled. A dissident stockholder contended that the company did not provide a shareholder list within the time limits required by state law in order that the shareholder could engage in a "Proxy Battle." The judge in comments from the Bench at the conclusion of the hearing indicated that, while he felt that the dissident shareholder's methods amounted to "self-inflicted injury," he would rule "out of an abundance of caution" for the shareholder in order to be absolutely sure that no damage could possibly come to the shareholder's rights. While the Company respectfully disagrees with the ruling, we will, of course, comply with the ruling.
The Company believes that this action is a continuation of this shareholder's attempt to gain control of the Sunshine mine property for his own self serving desires. In April of this year this same shareholder attempted, through another company with which he is affiliated, to acquire 65% ownership and operational control of the mine under terms very unfavorable to the stockholders of Sterling. The proposal was completely unsatisfactory for many reasons and the Company was compelled to reject the offer. The shareholder later, through other companies he is involved with, brought a personal suit against the President of Sterling, Ray DeMotte. These sorts of actions damage the Company by hampering fund raising, distracting management from their operational duties, and can depress the stock price.
The cancelled November 2, 2005 special meeting will cost the company (and its shareholders) around $10,000. The Company does not intend to waste its resources battling the dissident in the media.
Special Meeting re-scheduled for December 21, 2005.
Sterling Mining Company has re-scheduled the Special Meeting for December 21, 2005. The matters on the agenda still must be voted on.
Auditors must be appointed for 2005 financial statements.
The Company is nearing the current capitalization limit of 20 million shares. To meet our objectives for 2006 and beyond, we must increase the capitalization to facilitate funding options. Management intends to judiciously issue shares to achieve our operational goals.
President Ray DeMotte said: "Since 2003, we have followed a systematic and methodical plan to return the Sunshine Mine to long-term sustainable production. Maintenance, ongoing rehabilitation, exploration, and development of a mine plan have progressed on schedule. We have staffed our operations with highly experienced and qualified professionals at all levels."
Annual Meeting scheduled for February 18, 2006
In compliance with the corporate by-laws, and state law, an Annual General Meeting of Shareholders is scheduled for February 18, 2006 the third Saturday of February. The proxy statement relating to the annual shareholders' meeting will be mailed to investors in December.
Sterling Mining Company controls the legendary Sunshine Mine, the richest silver mine in American history with more than 360 million ounces of production over the past century. The Company also holds several properties in Mexico, including the Baroness Tailings Project in the Zacatecas silver district, which began production in 2005. Sterling stock trades on the OTC Market Exchange under the symbol "SRLM". Please visit the Sterling website at www.sterlingmining.com for more information.
Certain statements contained in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
For more information contact:
Sterling Mining Company
Raymond De Motte, (208) 666-4070
www.sterlingmining.com
Investors Relations Contacts:
Cavalcanti Hume Funfer Inc. (CHF Inc.)
Olav Svela, Vice President & Account Manager,
Tel: (416) 868-1079 ext: 242
olav@chfir.com
Cathy Hume, CEO
Tel: (416) 868-1079 ext.: 231
cathy@chfir.com
If you would like to receive press releases via email contact Alison Tullis at Alison@chfir.com. and specify "Sterling press releases" in the subject line. |
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