Coloured Ties pushes two-cent dividend at Labrador Gold

Executive Summary

• Coloured Ties Capital Inc., a major shareholder of Labrador Gold Corp. (TSXV: LAB), along with concerned shareholders Kal Malhi and Rauni Malhi, are committing to pay a two-cent dividend to shareholders if successful, to be declared within seven days of the upcoming shareholder meeting.
• The proposal aims to halt what the shareholders describe as "value destruction" and "treasury destruction," citing a decline in Labrador Gold's treasury from over $19 million (as of Dec. 31, 2024) to an expected $12–14 million.
• Coloured Ties argues that returning capital via dividends is preferable to continuing current management's strategy of pursuing remote greenfield projects and minority investments, which they claim have delivered zero shareholder value.

Key Details

• Dividend Proposal: Commitment to pay a two-cent dividend per share, declared within seven days of the shareholder meeting.
• Treasury Status: Labrador Gold's treasury has dwindled from over $19 million (Dec. 31, 2024) to an expected $12–14 million following the upcoming meeting.
• Strategic Argument: Coloured Ties seeks to eliminate costs associated with remote grass roots projects and minority investments, diverting those expenses toward the shareholder dividend.
• Share Price Context: Prior to Coloured Ties' involvement, Labrador Gold shares traded in the six-cent-to-eight-cent range (June–July 2025).
• Projected Return: A two-cent dividend would represent a 25% to 33% return based on pre-Coloured Ties share values, while leaving shareholders with intact holdings in a restructured company.
• Shareholder Action: Coloured Ties urges shareholders to vote on the gold proxy or gold VIF to reverse "years of mismanagement" and support their proposed changes.
• Contact Information: Advisense Partners is listed as the strategic adviser for voting assistance (1-866-207-4819 / [email protected]).

Notable Quotes

• "Shareholders are tired of the continuing value destruction, including the recently announced 'pipe dream' greenfield investments."
• "It would be far better to return some capital to shareholders than to continue to gamble it away on these poorly considered, so-called investments in other companies' projects."
• "Coloured Ties believes that returning some capital to shareholders is the right thing to do and it would still leave enough capital in the treasury to pursue prudent brownfield opportunities."
• "Only by voting on the gold proxy or gold VIF can shareholders reverse years of mismanagement and only by supporting Coloured Ties can shareholders finally get some of their own capital back."