SAN FRANCISCO, June 3 /CNW/ - PASSPORT CAPITAL, LLC (Passport), the sole
managing member of Passport Management, LLC, which through funds owned or
advised by it controls approximately 13.1% of the common shares of WGI Heavy
Minerals, Incorporated (WGI), announced today that it has filed a dissident
proxy circular in which it recommends that WGI's shareholders vote FOR a slate
of directors proposed by Passport.
Passport believes that a complete change of leadership is absolutely
necessary to unlock the value that exists in WGI. Since the time Mr. Covell
Brown took over as Chairman of WGI in November 2004, WGI has lost 87% of its
share value. During such time, in Passport's opinion, the WGI Board has been
complacent about operational under-performance and has lost the faith of many
shareholders. In addition, the WGI Board has approved excessively high
director and management compensation which seems to indicate that it is more
preoccupied with its own interests than with those of WGI's shareholders. In
Passport's view, this deplorable situation is no longer tolerable and the
status quo is unacceptable.
Passport asks that WGI's shareholders read the dissident proxy circular
in which Passport highlights a comprehensive plan to turn WGI around so as to
unlock value for its shareholders. The new independent directors being
proposed, consisting of Donald Siemens, Robert Atkinson, Daniel Burns, John
Nugent, Timothy Ryan and Johann Tergesen, are persons with direct industry
experience and skills and with a superior track record of producing results
for shareholders. Passport urges shareholders to vote the YELLOW form of proxy
in order to implement this needed change in WGI's leadership. Passport is a
long-term, value oriented investor and funds it manages have been a
shareholder of WGI since 2003. Passport's ultimate goal is a stronger WGI that
is able to deliver the returns its shareholders deserve.
WGI shareholders are encouraged to contact Kingsdale Shareholder Services
Inc. (1-800-775-4067 or 1-416-867-2272 (collect calls accepted)), which is
assisting Passport, with any questions or if they require assistance voting
their YELLOW form of proxy. In order to ensure that their votes count, WGI
shareholders that wish to vote in favour of the directors being proposed by
Passport are asked to send their completed, dated and signed YELLOW proxies to
Kingsdale Shareholder Services Inc. either by facsimile (to fax no.
1-866-545-5580 or 1-416-867-2271) OR BY DELIVERY TO Kingsdale at The Exchange
Tower, 130 King Street West, Suite 2950, P.O. Box 361, Toronto, Ontario M5X
1E2, in either case such that they are received by NO LATER THAN 5:00 P.M.
(EDT) ON FRIDAY JUNE 20, 2008.
The complete Dissident Circular, letter to shareholders and YELLOW form
of proxy can be accessed on the System for Electronic Document Analysis and
Retrieval (SEDAR) at www.sedar.com.
PASSPORT CAPITAL, LLC
Passport Capital, LLC is a San Francisco based global investment firm
with approximately US$4.5 billion of assets under management. Passport and its
principals have extensive experience investing in the Canadian, U.S. and
global capital markets. The funds it manages are long-term, value-oriented
shareholders which, as of the date hereof, collectively own or control an
aggregate of 3,080,500 common shares of WGI, representing approximately 13.1%
of the currently outstanding common shares, making them today the largest
shareholders of WGI.
Certain statements contained in this press release may constitute
forward-looking statements. Such statements reflect Passport's current views
and intentions with respect to future events and are subject to certain risks,
uncertainties and assumptions. Many factors could cause the actual results,
performance, actions or achievements of WGI or others that may be expressed or
implied by such forward-looking statements to vary from those described herein
should one or more of these risks or uncertainties materialize. Such factors
include, but are not limited to, economic, business, technological,
competitive and regulatory factors as well as the terms of contractual
commitments to which WGI is subject of which Passport is not aware.
For further information:
For further information: Kingsdale Shareholder Services Inc.
(1-800-775-4067 or (416) 867-2272 (collect calls accepted))