The Concerned Shareholders of Augyva Mining Resources Inc.

August 17, 2011 08:00 ET

The Concerned Shareholders of Augyva Mining Resources Inc. Urge Shareholders to Protect Their Investment and Support the New Board Nominees

Vote Your BLUE Proxy Today

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2011) - RCM Partners Inc. ("RCM"), on behalf of funds and entities that it advises, is a significant institutional shareholder (the "Concerned Shareholder") of Augyva Mining Resources Inc. ("Augyva" or the "Company"), and announced today that it is in the process of mailing and has filed a concerned shareholder proxy circular (the "Concerned Shareholder Circular") that provides shareholders with compelling reasons to support their nominees (the "Concerned Shareholder Nominees") at the upcoming annual and special meeting to be held on August 29, 2011.

"We strongly believe that, without a material change to the current Board, the value of yours, and our, investment in the Company may be at risk," said Mr. Kuldeep Billan of RCM. "We believe our proposed slate has the depth of experience, independence and focus to best form and pursue a strategy that will maximize the value of the Company's assets and ensure a highly transparent and constructive dialogue aimed at the creation of shareholder value."

The Concerned Shareholder has serious concerns regarding the current board and management's actions, strategy and future prospects for creating value for all shareholders, including:

  • A History of Personal Enrichment at the Expense of Public Shareholders: From August 14, 2006 through August 12, 2011, the Company's share price has lost approximately 48% of its value while the share count has increased by approximately 200%;
  • Poor Record of Value Creation and Inability to Develop its Assets: The current board and management has shown an inability to (a) effectively maximize the value of Company's interest in the Duncan Lake Iron Ore Project ("DLIOP") and (b) form a comprehensive and actionable strategy aimed at minimizing further dilution;
  • Questionable Capital Allocation and Strategy: The current board and management's actions appear to demonstrate a disregard for shareholder dilution, a questionable understanding of corporate finance and capital markets and a lack of a coherent strategy to maximize value for all shareholders;
  • Failures of Corporate Governance and Poor Disclosure: In addition to other questionable corporate governance practices, management and the current Board have engaged in poor disclosure practices to the detriment of all shareholders; and
  • Management's Refusal to Engage with its Shareholders: The Concerned Shareholders have attempted on numerous occasions to express the concerns outlined within the Concerned Shareholder Circular, discuss prospective strategy and propose changes to the current Board in order to create the appropriate amount of transparency and independence to better serve shareholders. These attempts at a constructive dialogue have been largely rebuffed by management.

The Concerned Shareholder provides shareholders with an alternative:

  • A New Board that is Independent and Can Maximize the Value of Your Investment: The Concerned Shareholder Nominees include truly independent, highly experienced and reputable individuals in the metals and mining industry and investment professions, as well as two directors of the current Board, who the Concerned Shareholder feels have added a material amount of value to the DLIOP and, with a fully engaged and focused Board, will be able to increase shareholder value going forward.

Mr. Billan emphasizes that, "shareholders deserve to have a Board and management that are accountable to them and singularly focused on creating value for all stakeholders of the Company. It is time for change."

Shareholders are being asked to vote their BLUE proxy by the proxy voting deadline, Thursday, August 25, 2011 at 12:00 noon (EST) to support the Concerned Shareholder Nominees and enable them to protect your investment.
Shareholders who require assistance voting their BLUE proxy should contact Kingsdale Shareholder Services Inc. at 1-877-657-5859 or 1-416-867-2272 (collect calls accepted) or email contactus@kingsdaleshareholder.com.

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