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PacificOre dissidents complain about admin expenses


Mr. Wim Bakker, concerned shareholder, reports


In keeping with the trend since 2005 when administration costs exceeded exploration costs by a staggering $10-million, the most recent financial statements filed by PacificOre Mining Corp. for the six-month period ending April 30, 2013, show exploration expenditures of $181,171, while administrative expenses were $542,138. While the current board will undoubtedly blame such lack of concern for shareholder interests on prior management, the current board has yet to formally state it will reverse this trend. While the current board has repeatedly claimed, and again reiterated in its management discussion and analysis, that it is “regrouping,” concerned shareholders believe shareholders deserve more. As such, the concerned shareholders offer some advice to the current board on things it can do now to enhance shareholder value.

First and foremost, immediately cease and desist providing financing to related party companies. PacificOre’s most recent financial statements show an increase in receivables of $30,020 in the most recent quarter to a whopping $418,184 owing from related companies. Further, while much of this has already been written down, the board owes a duty to shareholders to explain what they are going to do, if anything, to recover these receivables. This money could be used for exploration to advance the company’s property interests and not the other interests of the related party.

Secondly, ensure material information is disclosed in a timely fashion. While this might seem common sense to most, the current board may not appreciate that the appointment of officers requires a news release according to TSX Venture Exchange Policy 3.1 Section 4.3, which states, “If there is a change in the directors or officers of an issuer, the issuer must issue a press release as required by Policy 3.3 — Timely Disclosure.”

PacificOre’s most recent regulatory filings show Don Wilson as the acting chief executive officer of the company, the only public disclosure of such appointment. However, no press release has been issued by PacificOre of this fact. Mr. Wilson’s only prior experience as an insider of a public company appears to be with the now-defunct Pro Minerals Inc. PacificOre is the largest shareholder of Pro Minerals and has suffered a tremendous loss of value on its Pro Minerals shareholdings. The board should issue a press release in accordance with regulatory requirements announcing Mr. Wilson’s appointment and further explain to shareholders why he is the best person to lead the regrouping of the company in light of Mr. Wilson’s involvement in causing such steep losses to PacificOre.

It was noted in the related party section of PacificOre’s most recently filed financial statements that no geological consulting fees were paid to any director or officer of the company, whereas in PacificOre’s 2012 year-end audited financial statements, it showed $75,527 was paid to Christian Derosier for such services. If this was inadvertently excluded in the quarterly financial statements, they should be restated as this is material information. However, if Mr. Derosier is not receiving any consideration, the board should publicly disclose it as shareholders, especially the concerned shareholders, would look very favourably upon this and his commitment to the company.

The concerned shareholders offer this advice as the concerned shareholders see no reason to wait for the annual general meeting to begin working in the best interests of shareholders. Current management can only regroup and hang on for so long, and any positive steps taken now will only make the transition, if any, more efficient and effective when it happens. The concerned shareholders hope current management also has the interests of shareholders at heart and gives serious consideration to their suggestions.

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