VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2012) - International Energy & Mineral Resources Investment (Hong Kong) Company Limited ("HK CO"), the largest shareholder of Mosquito Consolidated Gold Mines Limited ("Mosquito"), refers to Mosquito's news release of September 13, 2012 (the "September 13 news release") pursuant to which Mosquito has advised that an independent review of Mosquito's CuMo project mineral resource estimates has led to the detection of an error in the previous calculations of the mineral resource estimate, which calculations were contained in a Preliminary Economic Assessment dated November 18, 2009 (the "PEA") prepared by Ausenco Canada Inc. for the CuMo Project as well as in a technical report dated June 14, 2012 and titled Resource Estimate Update 2011 prepared by Snowden Mining Industry Consultants (the "Snowden Report" and collectively with the PEA and previous independent technical reports containing mineral resource estimates prepared in connection with the CuMo Project, the "Prior Technical Reports"). We note that qualified persons of independent geological and engineering firms have each certified in the Prior Technical Reports that they are responsible for their respective reports, including the calculation of the mineral resource estimates contained therein.
Given the seriousness of these allegations, HK CO believes all affected parties should urge Mosquito to engage a recognized independent geological consulting firm to conduct an objective review of the calculation of the mineral resource estimates.
HK CO notes the following:
- If the results from the review are that the mineral resource estimates were not correct, it would mean that there would be problems with the Prior Technical Reports, and all shareholders, including HK CO, would have sustained a significant loss on their investment as a result thereof. If that was to occur, HK CO would urge Mosquito to seek legal recourse against the independent geological and engineering firms which authored the Prior Technical Reports.
- If the results from the review are that the mineral resource estimates were correct, HK CO would urge (a) Mosquito and its shareholders to hold Brian McClay and Wayne Ash, the authors of the September 13 news release, legally responsible for all consequences of recklessly publishing misleading, unsubstantiated and incorrect information and thereby damaging Mosquito's reputation and causing significant losses to all shareholders; and (b) securities regulators to also hold Mosquito's current board and management responsible for their actions.
- Mosquito's stock price has declined over the past year. After Mosquito's news release of September 13, 2012, its stock price fell nearly 20%. In the circumstances, and given our concerns with existing management of Mosquito, we believe that Canadian securities regulators should investigate the current board and management of Mosquito and ascertain when Mosquito first learned about the issues in respect of the mineral resource estimates and whether any board or members of management reduced their shareholdings of Mosquito before the news release was published.
- HK Co reserves its right to pursue other legal options.
Hongxue Fu, Chairman, International Energy & Mineral Resources Investment (Hong Kong) Company Limited