Seeking Alpha

Timmins Gold denies claim it rebuffed potential buyers

  • Timmins Gold (TGD -9.4%) is denying allegations made by Sentry Investments, which launched a proxy fight against TGD on Monday, that it rebuffed potential buyers that were interested in the company.
  • TGD rejects Sentry's claim that companies with superior growth prospects were denied due diligence access; the miner says one potential suitor made an informal proposal which was brought to the board’s attention and was given due diligence access, while other parties were provided information under confidentiality agreements.
  • TGD also says it tried to resolve its issues with Sentry privately to avoid the proxy contest, and invited the fund manager to propose director candidates.
Comments (5)
  • MisterJ
    , contributor
    Comments (855) | Send Message
     
    Another gold mining disaster, what a surprise!
    6 Jun 2014, 03:17 PM Reply Like
  • smcgibbon
    , contributor
    Comments (66) | Send Message
     
    I don't call it a disaster; it's about holding management and the BOD accountable for making decisions in the best interest of the shareholders. As a shareholder I wouldn't want management & BOD to have a sense of entitlement. It will be interesting to follow this one.
    6 Jun 2014, 03:58 PM Reply Like
  • The Investment Doctor
    , contributor
    Comments (1198) | Send Message
     
    Agreed, it'll be very interesting to watch this fight. Sentry is right about the late AGM and about the directors, but I'd think this is something which could be solved behind closed doors, and I personally don't think this will eventually result in a real proxy fight.

     

    Accountability is important, but TMM didn't really screw anything up, so it seems to be a purely procedural attack. That being said, adding 2 of Sentry's proposed directors (I'd prefer Lennox-King and Hall, would dislike Troy Fierro as he didnt prove to be of value at Gold Canyon) to the board and the promise the next AGMs will be within 6 months after closing the year should be sufficient for Sentry to back down.
    7 Jun 2014, 07:33 AM Reply Like
  • smcgibbon
    , contributor
    Comments (66) | Send Message
     
    Fierro worked with Hall at Metallica and built cerro San Pedro; very strong.
    7 Jun 2014, 08:36 AM Reply Like
  • The Investment Doctor
    , contributor
    Comments (1198) | Send Message
     
    That's true, but I'd prefer Hall and Prefontaine over Fierro. Just a personal preference
    7 Jun 2014, 05:40 PM Reply Like
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