Shareholders of Eco Oro Commence Litigation to Set Aside CVRs and Related Agreements

TORONTO, Dec. 20, 2016 /CNW/ - Two shareholders (the "Shareholders") of Eco Oro Minerals Corp. (TSX: EOM) (the "Company") have today filed a petition against the Company, each of its directors (other than Mr. O'Halloran) and Trexs Investments, LLC (an entity managed by Tenor Capital Management Company, L.P.)  seeking to set aside and cancel the Investment Agreement between the Company and Trexs, and the agreements entered into between the Company and each of Anna Stylianides, Amber Capital LP , Paulson & Co. Inc. and two other persons, pursuant to which notes and contingent value rights were issued. The Shareholders assert that the affairs of the Company have been conducted, and the powers of the directors have been exercised, in a manner that is oppressive to the  shareholders and that the Company has acted in a manner that is unfairly prejudicial to shareholders. These actions have resulted in individual harm suffered by the Shareholders and others. In the alternative, the Shareholders are also seeking leave to bring a derivative action, on behalf of the Company, against the directors of the Company for breaches of fiduciary duty and against the other respondents to declare the Investment Agreement, notes and contingent value rights to be null and void.

Mr. Meliambro stated "We do not take this action lightly. We believe we have no choice but to pursue this action in order to put an end to an abusive and coercive transaction. We have heard from numerous shareholders who are angry and upset with the Company's actions, and we would ask that you continue to express your displeasure to the board of directors of our company."

SOURCE Concerned Shareholders of Eco Oro Minerals Corp.