NAPLES, Jun 24, 2020 (GLOBE NEWSWIRE via COMTEX) -- Pentwater Capital Management LP ("Pentwater"), the largest minority shareholder of Turquoise Hill Resources Ltd. ("Turquoise Hill" or the "Company") /zigman2/quotes/209933612/delayed CA:TRQ +1.40% /zigman2/quotes/208953645/composite TRQ +1.64% , has written the attached letter to the Board of Directors. The letter outlines yet another example of how the Board has benefited its largest shareholder Rio Tinto by failing to disclose important and necessary financial information to TRQ shareholders. Several examples of the Board's dereliction of its duty to provide full and adequate disclosure include:
-- Turquoise Hill refuses to disclose the amount of the cost overrun for Shaft 2 and the reason for that cost overrun. As the operator of the mine, Rio actually works for TRQ and is TRQ's contractor. In July 2018, TRQ reaffirmed that Shaft 2 would be completed by the end of 2018. Just ten weeks later, TRQ announced that there would be material delays at Shaft 2 that resulted in Shaft 2 not being completed until October 2019. How much of the delay was Rio's fault? How much did the delay of Shaft 2 contribute to the cost overruns? This information is certainly available to the Company since Shaft 2 was completed over 7 months ago. Why won't you let your shareholders know the truth?
We Need Your Support
We are seeking your support at the Company's upcoming annual and special meeting of shareholders to be held on July 24, 2020 to restore accountability at Turquoise Hill and give minority shareholders back their voice.
We encourage our fellow shareholders to consider the facts and take action against the current culture of entrenchment, value destruction and misconduct at Turquoise Hill. The interests of the Company's minority shareholders have been disregarded for far too long. Your vote is critical to initiate much-needed change, to restore accountability and to safeguard minority shareholder interests in Turquoise Hill.
Shareholders are urged to vote only the GOLD proxy:
-- FOR the election of Matthew Halbower to the board of directors of the Company;
-- WITHHOLD in respect of the election of all of the management nominees to the board of directors of the Company; and
-- FOR the adoption of the shareholder proposal submitted by Pentwater to amend the Company's articles to provide minority shareholders of the Company with the exclusive right to nominate and elect three of seven directors to the Board.
Shareholders are urged to read the full text of Pentwater's proxy circular, related press releases and the June 24, 2020 Letter to the Turquoise Hill Board, which have been filed and made available under Turquoise Hill's issuer profile at www.sedar.com .
For further information contact:
MacKenzie Partners, Inc.
Daniel Burch - 1-212-929-5748
Jeanne Carr - 1-917-648-4478
Pentwater Capital Management LP
June 24, 2020
Dear Mr. Quellman and Members of the Board of Directors: