Concerned shareholders of Forbes & Manhattan Coal Corp. questions process to acquire Riversdale Mining Limited from Rio Tinto
DENVER, CO, Sept. 26, 2012 /CNW/ - Resource Capital Fund V L.P. ("RCF"), Terrafirma Securities Holdings LL.C. and Skye Alba Pty Ltd, (together the "Concerned Shareholders") today expressed concern regarding the announcement from Forbes Coal & Manhattan ("the Company") to enter into a definitive agreement to acquire 100% ownership of the shares and shareholder claims of Riversdale Mining Limited in Riversdale Holdings (Proprietary) Limited from Rio Tinto.
"We consider it inappropriate that the company has been committed to a transaction by a Board that does not have the majority support of its shareholders," said Mason Hillis, Partner, RCF, on behalf of the Concerned Shareholders. "We feel that the timing of this decision validates our concerns that the Board is not independently and transparently operating to the benefit of the Company's shareholders."
The transaction comes as the Concerned Shareholders recently sought and secured overwhelming shareholder support to strengthen the corporate governance standards at Forbes Coal for the benefit of shareholders, through the appointment of a slate of directors that reduces the influence of any one shareholder.
Cautionary Note Regarding Forward Looking Statements
Certain statements contained herein are "forward looking statements" within the meaning of applicable securities laws. Often, but not always, forward-looking statements may be identified by their use of forward-looking terminology such as the words "plans", "expects", "expected", "projects", "believes", "anticipates", "intends", "estimates", "scheduled" or other similar words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to known and unknown risks, uncertainties and other factors which could cause actual results, performances or achievements to differ materially from future results expressed or implied by such forward looking statements. Factors related to such risks and uncertainties, and underlying estimates and assumptions include, among others, the Concerned Shareholders' assessment of the effect of the proposed changes on the Company and on the shareholders of the Company, the timing and prospects for the implementation thereof, general economic and market conditions, changes in law and the ability to implement business strategies and pursue business opportunities. Shareholders are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with applicable Canadian securities commissions, copies of which are available at www.sedar.com. Accordingly, undue reliance should not be placed on forward looking statements or information. We do not expect to update forward-looking statements or information continually as conditions change, except as may be required by law.
SOURCE: Resource Capital Fund V L.P.For further information:
RCF Contact: Mason Hills, Partner, +1 720 946 1444