Labrador Gold board warns shareholders of dissident bid

Executive Summary

• Labrador Gold Corp. is mailing a letter to shareholders ahead of its Annual General and Special Meeting on February 24, 2026, warning against a dissident shareholder campaign led by Coloured Ties Capital Inc. and its principal, Kulwant (Kal) Malhi.
• The Board of Directors urges shareholders to vote against the dissident's resolutions, citing concerns that the dissident seeks to seize control of the company's cash without paying a premium to shareholders and has a history of shareholder value destruction.
• Shareholders are instructed to vote only on the "blue" proxy form or Voting Instruction Form (VIF) provided by the company and to disregard any proxy materials from the dissident.

Key Details

• Meeting Details: The Annual General and Special Meeting of shareholders is scheduled for February 24, 2026.
• Dissident Parties: The dissident group is identified as Coloured Ties Capital Inc. and its principal, Kulwant (Kal) Malhi.
• Core Conflict: The Board alleges the dissident is attempting to gain effective control of Labrador Gold without paying a premium to all shareholders, potentially exposing shareholders to conflicted capital allocation decisions and the risk of cash being spent on purposes that do not benefit all shareholders.
• Board Recommendation: The Board unanimously recommends voting for all of Labrador Gold's resolutions and voting against/withholding on the dissident's resolutions.
• Voting Instructions: Shareholders are directed to use only the "blue" proxy or VIF and to disregard "GOLD" proxy materials from the dissident.
• Adviser Contact: Shareholders requiring assistance are directed to contact Kingsdale Advisors at 1-888-518-6813 (North America) or 1-647-251-9740 (International), or via email at [email protected].
• Company Profile: Labrador Gold is a Canadian mineral exploration company focused on gold projects in Eastern Canada, specifically the Hopedale property (Florence Lake greenstone belt) and the Borden Lake project in Ontario.
• Share Count: 170,009,979 common shares issued and outstanding.
• Ticker: LAB (TSX Venture Exchange).

Notable Quotes

• "The dissident is attempting to gain effective control of Labrador Gold without paying a premium to all shareholders, while exposing shareholders to the downside risk of conflicted capital allocation decisions without any corresponding compensation."
• "Once the corporation's cash is spent, shareholders cannot vote it back, underscoring the importance of protecting Labrador Gold's financial resources from a self-serving dissident."
• "The Board unanimously recommends that shareholders vote for all Labrador Gold's resolutions and vote against/withhold on the dissident's resolutions."