CSG: TSX-V
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.
/s/"Dennis Milburn"
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.