JAG - TSX/NYSE
BELO HORIZONTE, Brazil, June 25, 2012 /CNW/ - Jaguar Mining Inc. (JAG:
TSX/NYSE) hereby responds to a misleading press release issued earlier
today by Bristol Investment Partners LLC.
Bristol has deliberately fabricated the content of discussions both with
Jaguar's chief financial officer regarding fees paid to members of the
special committee and with Jaguar representatives regarding the offer
made to Bristol to share details of the strategic review process.
Bristol also selectively quotes from Glass Lewis' report and incorrectly
states that Institutional Shareholder Services (ISS) and Glass Lewis
gave the benefit of the doubt to the directors.
The truth regarding the conversation with Jaguar's CFO
In its press release, Bristol incorrectly quotes Mr. Roller, Jaguar's
chief financial officer, as saying that Bristol's methodology for
estimating total costs for the strategic process was reasonable. Mr.
Roller never made such a statement and in fact was shocked when he saw
Bristol's estimate of payments exceeding $750,000 in its schedule 13D.
Bristol had no reasonable basis to believe that its fee estimate was
correct. That purported estimate was almost four times higher than the
fees that were actually charged.
No standstill was ever requested
Bristol's allegation that the company "attempted to force Bristol into
entering into an effective standstill…for a period of up to six months"
is false and misleading. So is the allegation that Jaguar's board
merely offered to explain why it did not respond to Bristol's
In conversations with Trey Reik, managing member at Bristol, and his
legal counsel, the company and its representatives offered to provide
Bristol full details of the strategic review process, provided that
Bristol sign a confidentiality agreement in order to safeguard against
selective disclosure issues. The company never requested that Bristol
sign a standstill agreement as part of the confidentiality agreement.
In addition, at the time of those discussions with Bristol, it was made
clear that the purpose of the confidentiality agreement was simply to
bridge the period between the conveying to Bristol of detailed
information regarding the strategic review process and the
dissemination of that information to the market. Bristol was informed
that the company fully expected to release that information within the
following seven days. In fact, the information was released into the
market just five days following these discussions.
Both ISS and Glass Lewis have recommended that shareholders vote FOR
each of the directors nominated by the company
In its press release, Bristol selectively quotes from the Glass Lewis
report and then incorrectly states that ISS and Glass Lewis followed
the path of "benefit of the doubt" to directors. This statement is
both self-serving and incorrect.
ISS carefully considered Bristol's various complaints, not only
reviewing Bristol's allegations, but also seeking a response from
Jaguar's board. It made an informed decision in an even handed,
professional manner. While the company was pleased that Glass Lewis
also recommended that shareholders vote FOR all of the current
directors, it was disappointed that Glass Lewis did not give the board
the same opportunity to respond to Bristol's complaints. Bristol is a
sophisticated U.S. hedge fund. It understands that Glass Lewis' policy
is to issue its report without any prior discussion with an issuer's
board or management regarding issues raised by shareholders. Yet
Bristol quotes extensively from the Glass Lewis report as if it somehow
captures the truth, when ISS, following discussions with company
management and directors reached very different conclusions. Bristol
has conveniently ignored the better researched ISS report in its press
Jaguar's board is deeply troubled by Bristol's willingness to issue
misleading press releases in an effort to influence Jaguar
shareholders' votes ahead of the upcoming annual meeting scheduled for
June 29, 2012. Jaguar intends to promptly file a complaint with the
enforcement staff of the Ontario Securities Commission requesting that
they immediately investigate this matter.
About Jaguar Mining
Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and is developing the
Gurupi Project in Northern Brazil in the state of Maranhão. The Company
is actively exploring and developing additional mineral resources at
its approximate 240,000-hectare land base in Brazil. Additional
information is available on the Company's website at www.jaguarmining.com.
SOURCE Jaguar Mining Inc.
For further information:
Vice President, Investor Relations
Valéria Rezende DioDato
Director of Communication
Vice-President, Kingsdale Communications Inc.