VANCOUVER, Aug. 18 /CNW/ - YS Mining Company Inc. ("YSM") is the largest shareholder, and the largest creditor, of Tagish Lake Gold Corp. ("Tagish Lake"). YSM is a non-reporting British Columbia company owned as to a 41% shareholding by Yukon Nevada Gold Corp. (TSX: YNG).
On July 21, 2010, New Pacific Metals Corp. ("New Pacific") commenced an unsolicited take-over bid for Tagish Lake. To date, the sole response to the bid by the Special Committee of Tagish Lake's Board of Directors and its advisors has been to issue a "no recommendation" recommendation to the Tagish Lake shareholders.
In the absence of any other action by the Special Committee of Tagish Lake and its advisors, YSM commenced a rigorous review of the take-over bid circular prepared by New Pacific.
This review identified multiple misrepresentations and errors in the bid circular prepared by New Pacific. As a result, in the absence of any action by the Special Committee of Tagish Lake and its advisors, YSM made an application to the British Columbia Securities Commission ("BCSC") for a cease-trade order with respect to New Pacific's bid. The BCSC's Corporate Finance department has subsequently confirmed these misrepresentations and errors.
In the absence of any action by the Special Committee of Tagish Lake and its advisors, YSM will be representing its own interests, and the interests of all other Tagish Lake shareholders, at a Hearing before the BCSC.
YSM will not be tendering its shares to the New Pacific bid, and urges that all other shareholders of Tagish Lake do the same. Since December, 2009, Tagish Lake has been led by an experienced management team which has a proven record of "turning around" distressed companies. YSM is of the view that it is in the best interests of the Tagish Lake shareholders to stay the course, and to allow the current management team to create long-term value for the shareholders.
YSM regrets being placed in the position of having to take the initiative in protecting its own interests and the interests of all the other shareholders of Tagish Lake, but in the absence of any action by the Special Committee of Tagish Lake and its advisors, it feels it has no alternative.
YSM is working on a constructive, long term, alternative to the New Pacific bid, which alternative YSM regards as being infinitely superior to New Pacific's offer.
Shareholders of Tagish Lake are urged to not tender their shares to the New Pacific offer.
In addition, YSM has appointed Laurel Hill Advisory Group to answer shareholder questions. Laurel Hill has established the following toll free telephone line to take shareholders' questions: 1-877-304-0211.
By Order of the Board of Directors,
YS Mining Company Inc.
SOURCE Veris Gold Corp.
For further information: For further information: Laurel Hill Advisory Group, 1-877-304-0211