|Raging River Capital LP|
April 26, 2016 12:19 ET
– Raging River encourages shareholders to take action to replace the three conflicted directors and empower their shareholder nominees to improve the long-term value of Taseko Mines’ shares.
– Raging River offers a closer look at their plan for change; clarifies untrue, misleading allegations made by Taseko Mines.
VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 26, 2016) – Raging River Capital LP (“Raging River”) releases a letter to shareholders highlighting the benefits of their “plan by shareholders for shareholders” and encourages shareholders to vote the BLUE proxy to improve Taseko Mines Limited (TSX:TKO)(NYSE MKT:TGB) (“Taseko Mines”) by ending the board’s conflicts of interest. Raging River also refutes misleading claims made by Taseko Mines regarding their bond position, further demonstrating the self-interested directors’ lack of knowledge and experience in corporate finance and capital markets.
“Taseko has tried hard to convince you that you should stick with the devil you know in the hopes that you are fearful of change. If you vote for the current directors they will take it as your approval to continue with their self-dealing and pattern of value destruction. It’s time to say enough is enough and end the conflicts of interest,” said Mark Radzik, Managing Partner of Raging River. “A vote for Raging River is a vote to restore trust at Taseko Mines. As the second largest shareholder, we will put shareholders’ interests first and increase the value of your shares.”
While the full text of the letter can be viewed here, at www.atrustedtaseko.com, or at Taseko Mines’ SEDAR profile at www.sedar.com, key points include:
- Only Raging River’s shareholder nominees can be trusted to put shareholders’ interests first and increase the value of your shares. The four independent, highly-qualified, and experienced nominees – Paul Blythe, Randy Davenport, Henry Park, and Mark Radzik – are aligned with shareholders. They will refocus on core assets and end risky projects on which the current directors have taken expensive chances with unknown returns.
- Raging River’s plan will help Taseko Mines’ share price. What Taseko Mines is missing is what Raging River’s nominees bring to the table: independence, capital markets experience, operating miners and a critical eye. Taseko Mines’ share price and liquidity have suffered because investors don’t trust the current board. This lack of trust has also resulted in unacceptably high interest rates on Taseko Mines’ debt. Changing the conflicted directors will help to restore investor trust and get a better deal for shareholders.
- Raging River’s plan for change:
- Review Gibraltar. Especially the abruptly changed mine plan, compliance, and stakeholder obligations, particularly water discharge.
- Prosperity needs new leadership to realize its potential. Whether Prosperity can be permitted is unknown.
- Improve corporate governance. Restore shareholders’ trust in Taseko and align the interests of management and the board with shareholders.
- Improve cost structure and capital allocation decision making.
- Stop the $110 million unnecessary risk of Curis Resources Inc. (“Curis”) and the Florence Project.
- Dismissing the desperate attacks made by Taseko Mines in an effort to minimize its second largest shareholder. Raging River is a shareholder first and will only make money when its fellow shareholders do, not through high fees like the conflicted directors. Raging River’s structure is a normal private equity structure where management gets a carry (or share of the gains). This carry is half of what would be considered normal for private equity. The other difference to private equity is that Raging River’s management is significantly invested in Raging River. Either way, Raging River only stands to profit when the share price goes up. Despite Taseko Mines’ fearmongering about the sale of assets, the reality is Curis’ previous sale process has confirmed Curis is effectively worthless. We believe Curis previously ran an unsuccessful sale process for Florence, with no disclosure to shareholders. We believe this confirms our conclusions that the development assets have essentially no value and that there is no scenario where they could be sold to the benefit of bondholders, or shareholders.
SHAREHOLDERS ARE ENCOURAGED TO VOTE FOR CHANGE BY 10:00 AM (EST) MAY 6, 2016
Shareholders are encouraged to vote their BLUE proxy or VIF “FOR” the removal of each of the self-interested and conflicted incumbent Taseko Mines directors: Ronald Thiessen, Russell Hallbauer and Robert Dickinson and the election of the following four independent and highly qualified new directors to the board: Paul Blythe, Randy Davenport, Henry Park and Mark Radzik.
Shareholders with questions should contact Kingsdale Shareholder Services at 1-888-518-6832 toll-free in North America, or 1-416-867-2272 outside of North America, or by email at firstname.lastname@example.org.
Raging River has engaged Norton Rose Fulbright Canada LLP as its legal advisor and Kingsdale Shareholder Services as its strategic and communications advisor and proxy solicitor.