Shareholder Revolt: Coloured Ties Battles Labrador Gold Board

VANCOUVER, BC – February 03, 2026 – A bitter corporate feud has erupted in the junior mining sector, as activist shareholder Coloured Ties Capital Inc. has launched an aggressive public campaign to oust the board of Labrador Gold Corp. In a series of scathing public statements, Coloured Ties accuses the current leadership of financial mismanagement, strategic blunders, and a “pattern of value destruction,” setting the stage for a high-stakes proxy battle that will culminate at a shareholder meeting on February 24, 2026.

Coloured Ties, a venture capital firm that, along with its principals, controls approximately 8.22% of Labrador Gold’s shares, is urging fellow investors to vote for its slate of nominees using a “GOLD” proxy. The activist investor claims it “cannot stand by and allow the Board to destroy Labrador when there is a better path forward.”

A War of Words and Proxies

The dispute centers on starkly contrasting views of the board’s performance and the company's future. Coloured Ties has leveled serious allegations, accusing the board of being in “credibility bankruptcy” following a “litany of Strategic Blunders.” In a press release, the firm characterized the board's communications as “shrill and desperate” attempts to distract from a track record of underperformance.

At the core of the activist’s financial argument is the claim that Labrador Gold’s treasury was depleted from $20 million to $16 million, with $2 million spent in a matter of months “with nothing to show for it.” Coloured Ties argues this is part of a troubling history of financial underperformance that follows several directors across multiple public companies.

Labrador Gold’s board has fired back, framing the conflict as an opportunistic and “self-serving” attempt by Coloured Ties to gain effective control of the company without paying a premium to all shareholders. In its own communications, the incumbent board has warned investors about what it calls Coloured Ties’ “history of shareholder value destruction” and potential conflicts of interest. Management is urging shareholders to discard the activist's materials and vote only the company’s “BLUE” proxy to support the current board and its strategic plan.

A Strategic Crossroads: Explorer or Investment Firm?

Beyond the war of words lies a fundamental disagreement over corporate strategy. The flashpoint is the board's proposed “Change of Business,” which would transform Labrador Gold from a pure-play exploration company into a “hybrid mining/investment issuer.”

According to management, this pivot is the result of an extensive strategic review. The plan involves maintaining its exploration activities while also making equity investments in other resource companies, with an initial $1 million investment earmarked for Northern Shield Resources Inc. The board has appointed veteran geologist Dr. Quinton Hennigh as an investment advisor, arguing the shift will allow the company to capitalize on undervalued opportunities in the current metals market. The company sees this as a timely move to navigate a sector where traditional financing is increasingly scarce.

Coloured Ties vehemently opposes this plan, labeling it a “reckless” and “ill-advised” strategy that is a “recipe for cash depletion.” The activist firm argues that investment issuers typically trade at a significant discount to their net asset value and that investors could buy into the same assets directly without paying for Labrador Gold’s corporate overhead. They contend the board lacks the requisite “business and investment acumen” to succeed, and that focusing on “greenfield, early stage and privately owned assets” is akin to “gambling your money on very risky, very long investment horizons.”

By the Numbers: A Tale of Two Financials

Both sides have presented financial data to support their positions. Coloured Ties’ claim of a dwindling treasury appears to be supported by public filings. Labrador Gold’s financial statements show cash and cash equivalents stood at approximately $24.2 million as of September 30, 2023, but had fallen to roughly $16.8 million by September 30, 2025, a significant decrease.

Further fueling the dispute is the board’s handling of a key asset sale. Coloured Ties points to Labrador Gold’s sale of its Kingsway Project to New Found Gold Corp. in July 2024 for shares valued at approximately $20 million. According to the activist, Labrador Gold later liquidated these shares for just over $12.1 million, realizing a loss of nearly $8 million. This sales figure is corroborated by Labrador Gold’s own interim financial statements.

Coloured Ties also dismisses the board’s attempts to showcase positive stock performance, claiming that any recent rise in Labrador Gold's share price coincided with Coloured Ties’ own purchasing activity, not with any successful execution by the board. The activist firm insists, “The charts don’t lie.”

The People Behind the Proxies

This corporate battle also puts the track records of the key individuals under a microscope. Coloured Ties is led by Kal Malhi, an entrepreneur and venture capitalist who founded BullRun Capital Inc. CTI points to his successes, such as the turnaround of LaFleur Minerals, as evidence of his ability to create shareholder value. In response to Labrador Gold’s accusations of potential conflicts of interest, CTI has publicly stated it will not divert any cash to related-party companies if its nominees are elected.

On the other side, Labrador Gold’s board is led by President and CEO Roger Moss, an exploration geologist with decades of experience. The board also includes directors James Borland and Leo Karabelas, both seasoned mining industry and capital markets professionals. Coloured Ties is seeking to remove Moss, Borland, and another director in its bid to reconstitute the board with its own five nominees.

With just weeks until the crucial vote, shareholders are left to weigh two fundamentally different futures for Labrador Gold. One path, advocated by the current board, involves a strategic pivot into a hybrid investment model. The other, championed by the activist shareholder, calls for a complete leadership overhaul and a renewed focus on building a respected exploration company. The outcome of this proxy fight will not only determine the composition of the board but will set the definitive course for the company's assets, cash, and strategy for years to come.