Trading Symbol TSX: GGC
VANCOUVER, June 18 /CNW Telbec/ - Genco's board of directors (the
"Board") is again compelled to respond to misinformation circulated by James
Anderson (the "Dissident") in support of his bid to unseat three members of
the Board. Rather than engaging in repetition and rhetoric, our response is
limited to a few of the most misleading statements in the Dissident's June 17,
2008 press release.
We have previously explained the difference between the approach taken by
the Board, focusing on the long-term development of Genco's ore producing
assets, versus that of the Dissident, which appears focused solely on
short-term results. However, to the extent that short-term share price
fluctuations are of concern, Shareholders should note that in the month
following the Dissident's inappropriate dissemination of a mass email string
to select third parties, Genco's closing share price plummeted from $3.03 per
share on March 28, 2008 to $1.85 per share on April 30, 2008, as illustrated
The Dissident's email string was sent to 48 recipients, including
friends, attorneys, select Genco Shareholders and a newsletter writer, and
made public matters relating to internal Board proceedings. The Dissident has
acknowledged that distributing the email was wrong.
Despite the Dissident's statement yesterday that he is prepared to work
with Greg Liller, President of Genco, Mr. Liller has reaffirmed and Wayne
Moorehouse, Vice President, Finance and Corporate Secretary of Genco, has
advised that they will both tender their resignations at the conclusion of the
Annual General Meeting if the Dissident is successful in his attempt to gain
control of the Board. Mr. Liller states: "Mr. Anderson previously attempted to
constructively dismiss me at a board meeting displaying his unwillingness to
work with me. Furthermore, in the past, Mr. Anderson has consistently ignored
the mine plans presented to him and all attempts by the technical team to
explain basic mining concepts to him."
Shareholders should also be aware that the Dissident was involved in
negotiating Mr. Gardner's and Mr. Blankstein's contracts. Changes were made to
the agreements based upon the Dissident's input. The terms of the contracts
were disclosed in Genco's Listing Application filed with the Toronto Stock
Exchange (the "Exchange") earlier this year. The Board approved the Listing
Application on January 10, 2008, including the terms of the compensation
agreements. The Dissident was a member of the Board at such time and voted in
favour of such approval.
The Dissident would have Shareholders believe that Mr. Gardner and
Mr. Blankstein received $1.5 million in consulting fees over the past two-year
period. Total cash compensation paid to each of Mr. Gardner and Mr. Blankstein
over such period was $262,872. While the compensation agreements of
Mr. Gardner and Mr. Blankstein contain results-based bonus provisions, such
arrangements are not uncommon nor unreasonable, and were approved by the
Board. Furthermore, the agreements contain provisions that such result-based
bonuses shall be paid with shares, if approved by the Exchange, at prices of
$3.59 per share for the 2007 bonus and $2.75 per share for the 2006 bonus.
Mr. Gardner and Mr. Blankstein also reduced the notice required for the
termination of their contracts by Genco from three years to one year.
How to Cast your WHITE proxy
You can support Genco by voting the WHITE proxy form shareholders
received in the mail with a VOTE FOR the resolutions contained therein. If you
have already voted using the Dissident proxy you have every right to change
your vote by simply executing the WHITE proxy. It is only your latest dated
proxy that will be counted. Your WHITE proxy must be voted by any one of the
methods described on the form no later than 11:00 a.m. (Vancouver time) on
Tuesday, June 24, 2008. The time limit for the deposit of proxies may be
waived by the Board at its discretion without notice.
The Board recommends that you discard any materials received from the
If you have any questions about the information contained in the news
release or require assistance in completing your WHITE proxy, please contact
Genco's proxy solicitation agent at:
Kingsdale Shareholder Services Inc.
North American Toll Free Number: 1-866-581-1024
Facsimile No: 1-866-545-5580
Please visit our website for regular updates at
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this release.
For further information:
For further information: Wayne Moorhouse, Vice-President, Finance and
Corporate Secretary, (604) 682-2205, firstname.lastname@example.org; Renmark Financial
Communications Inc.: Neil Murray-Lyon: email@example.com; Dan
Symons: firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717,