VANCOUVER, Oct. 15, 2014 /CNW/ - Cosigo Resources Ltd. (TSX-V: CSG) (the "Company") today announced the initiation of a strategic review process that will include the formation of an independent committee of the board. The committee, to be comprised of certain of the Company's independent (non-management) directors, will be charged with identifying, evaluating and recommending strategic options for the future of the Company and its stakeholders. To aid in its process, the committee will be empowered to retain independent financial and legal advisors.
The decision follows recent discussions with a dissident shareholder, which yesterday circulated a broadcast email to all shareholders soliciting support for a change of management and raising concerns about a proposed financial advisory services engagement currently under consideration by the board.
The board met with the dissident shareholder last week in an attempt to address his concerns, inviting him to present the board with a formal, alternative proposal. While management is now in receipt of the proposal, it lacks sufficient detail for the board to make an informed decision and therefore act in the best interests of the Company's shareholders. The proposal will be turned over to the strategic committee together with the proposed financial advisory services engagement for further deliberation. The Company will announce the recommendations of the committee on completion of the strategic review process.
The Company's board of directors, as the shareholders' elected representatives, take the concerns raised by the dissident shareholder very seriously and will be reaching out to shareholders directly in the coming days to answer questions. Like most junior exploration companies today, the Company is continually facing difficult financial and operational decisions, not all of which will be supported by all shareholders.
The Company also wishes to announce that it has received and accepted the resignation of Magnus Haglund from the board of directors, effective immediately. Mr. Haglund has also resigned from his position as Exploration Manager of the Company. "Magnus leaves the company on good terms with its members and management," said Dennis Milburn, Chief Executive Officer and Chairman of the Company. "On behalf of the board and management, we thank Magnus for his three years of dedicated service."
About Cosigo Resources:
Cosigo Resources Ltd. (TSX-V: CSG) is a Vancouver-based company with mineral interests in properties in Brazil, Colombia and Canada. Cosigo has assembled a strong team, well experienced in the exploration and mining-finance industries. The Company's main focus is in the Taraira Gold Belt, which straddles the border between northwestern Brazil and southeastern Colombia. In Brazil, geological mapping has identified more than 250 km2 of prospective geology and sampling has identified gold-bearing strata over long strike-lengths in several locations. Cosigo's ongoing work in the Taraira Gold Belt is the first modern exploration program in an area known to have hosted more than 100 historic gold mining operations.
On behalf of the Board of Directors
Cosigo Resources Ltd.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
SOURCE: Cosigo Resources Ltd.
For further information: Suite 1500, PO Box 1078, 885 West Georgia Street, Vancouver, B.C. Canada V6C 3E8, Phone: 877-866-8688 (N. America), +1-604-515-5970 (International), Web: www.cosigo.com