Coloured Ties files dissident circular at Labrador Gold

Executive Summary

• Coloured Ties Capital Inc., along with shareholders Kal Malhi and Rauni Malhi (controlling over 8% of Labrador Gold Corp.), have filed a dissident circular to solicit proxies for the annual and special shareholders meeting on Feb. 24, 2026.
• The dissident group aims to reconstitute the board of directors and reject the company's proposed change of business to an investment issuer, citing "perpetual underperformance" and "value destruction" by the current board.
• The campaign highlights specific financial losses attributed to the board, including the sale of Kingsway during a gold rally, an $8-million loss on New Found shares, and the squandering of $2-million of cash in two months on professional fees.

Key Details

• Proxy Solicitation: Coloured Ties and concerned shareholders are soliciting votes for the Feb. 24, 2026, annual and special meeting.
• Nominees: The dissident slate includes Kulwant Malhi, Ronald Wortel, Jean Lafleur, and Tara Asfour.
• Shareholder Base: The concerned shareholders own or control over 8% of Labrador Gold Corp.'s outstanding common shares.
• Strategic Dispute:
  • Dissident View: Proposes focusing on advanced brownfield mineral exploration projects with major mining companies, citing confidentiality agreements and data room access with respected miners. Claims this strategy offers shorter-term returns and lower risk.
  • Current Board Proposal: Proposed change of business to become an investment issuer, focusing on greenfield, early-stage, and privately owned assets.
• Financial Criticisms:
  • Board spent 18 months reviewing 51 projects without finding suitable investments.
  • Board promoted Northern Shield Resources (NRN) as a flagship investment at a 33% premium to market (dissidents argue private placements should be at a 15-25% discount).
  • NRN has written down property values 10 times since 2014 and written off ~$11-million.
  • Board sold Kingsway during a strong gold rally and sold New Found shares at an $8-million loss (or ~$13-million opportunity cost).
  • Board squandered ~$2-million of a $18-million cash position in two months on professional fees (lawyers, proxy solicitors).
• Specific Rebuttals:
  • Dissidents deny diverting cash to LaFleur Minerals (a company associated with Kal Malhi).
  • Dissidents state Ronald Wortel holds no options in LaFleur Minerals, contradicting management's circular.
  • Dissidents commit to enshrining in the board charter that Labrador will not enter into transactions with companies where nominees are directors/officers.
• Voting Instructions: Shareholders are urged to vote for the "gold proxy" or "gold VIF" to reject the change of business, reject the name change, remove current directors, fix the board size at five, and elect the dissident nominees.

Notable Quotes

• "Labrador directors are responsible for perpetual underperformance -- not surprising based on pattern of value destruction."
• "The board has overseen massive shareholder value destruction and underperformed every relevant comparator."
• "This board has shown a fundamental lack of business judgement or fundamental understanding of investing."
• "Absent an economically sound strategy and devoid of any credibility to execute on an investment issuer strategy the board is resorting to desperate scare tactics."