York Capital Management

November 20, 2007 08:00 ET

JGD Management Corp., Doing Business as York Capital Management

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2007) - JGD Management Corp., doing business as York Capital Management ("York Capital") announces that it is ceasing to file alternative monthly reports under Part 4 of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues for FNX Mining Company Inc. (TSX:FNX) ("FNX" or the "Issuer") as part of its decision to evaluate strategic alternatives with respect to maximizing the value of its security-holdings in the Issuer.

As at the date of this news release, York Capital, on account of funds and accounts managed and/or affiliated with it, holds 16,250,000 common shares ("Shares") of the Issuer. The Shares represent approximately 19.37% of the issued and outstanding Shares of the Issuer on a partially diluted basis.

York Capital believes this is an unprecedented time for sellers of high quality base metal assets, as evidenced by numerous recent transactions completed at multiples of net asset value materially higher than where FNX Shares trade today. Based on York Capital's knowledge of the industry and its contacts with industry players, York Capital believes that there may be significant corporate interest in FNX and any evaluation of strategic alternatives would attract multiple suitors. Furthermore, York Capital believes that any transaction would be consummated at a significant premium to the current stock price.

York Capital views FNX as a unique set of assets, with material exploration and resource upside that is still unrecognized by analysts or the market. York Capital believes that a management- and Board-led strategic review process is the best way to demonstrate the FNX's value to potential buyers and York Capital would like to continue to have ongoing open communication with the Issuer about what is in the best interest of the Issuer and all of its shareholders.

However, in the interim, York Capital will retain its own investment banker for advice on what it can do to try to maximize the value of its substantial block of Shares in the Issuer. York Capital reserves the right, on an ongoing basis, to communicate with other shareholders of the Issuer about matters of common interest and concern. York Capital also reserves the right to take any other steps that it believes appropriate to maximize the value of its security-holdings in the Issuer.

York Capital acquired the Shares for investment purposes. In the ordinary course of its investment trading business, representatives of York Capital, from time to time, engage in discussions with the management and directors of companies in which it has invested (on behalf of York Capital's advisory clients) concerning the business and operations of such companies and possible approaches to maximizing shareholder value. York Capital reserves the right, subject to market conditions, to make additional investments in, dispositions of, or to otherwise trade in the Issuer's securities in open market or private transactions, provided that in its judgment such transactions present an attractive (long-term or short-term) opportunity for profit.

Attached to this news release is a letter to the Board from York Capital dated November 19, 2007.

To view the attached letter: Letter to FNX Mining Company Inc. Board of Directors, please visit the following link:


The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Adam J. Semler
    (212) 300-1300
    (212) 300-1301 (FAX)