VANCOUVER, Aug. 23 /CNW/ - YS Mining Company Inc. ("YSM") is the largest shareholder, and the largest creditor, of Tagish Lake Gold Corp. ("Tagish Lake"). YSM has made an application to the British Columbia Securities Commission ("BCSC") for a cease trade order with respect to the unsolicited take-over bid commenced by New Pacific Metals Corp. ("New Pacific").
This application is made on the basis of multiple representations, errors and omissions alleged by YSM to be made by New Pacific in its take-over bid circular. In a news release dated August 18, 2010, YSM stated that the BCSC'S Corporate Finance department had confirmed the misrepresentations and errors. This statement is incorrect, and is hereby withdrawn. By Notice of Change dated August 20, 2010, New Pacific attempted to correct several of instances of non-compliant disclosure that YSM had brought to the attention of the BCSC. YSM now notes in the disclosure in the Notice of Change that New Pacific has paid an establishment fee of $350,000 to its controlling shareholder for the loan to finance the proposed acquisition of Tagish Lake. YSM will continue its review of the Notice of Change, paying particular attention to any non-arm's length relationships.
Despite the corrections attempted to be made in New Pacific's Notice of Change, in the opinion of YSM, the Notice of Change does not address the more material deficiencies in New Pacific's disclosure to Tagish Lake's shareholders, particularly the failure to originally disclose the proposed sale of New Pacific's flag-ship Huaiji property in a complex, multi-stage transaction. At YSM's request, these deficiencies are proposed to be the subject of a Hearing of the BCSC scheduled for August 30, 2010.
By Order of the Board of Directors,
YS Mining Company Inc.
SOURCE TAGISH LAKE GOLD CORP.
For further information: For further information: Laurel Hill Advisory Group, 1-877-304-0211