Taseko directors hit with $110m lawsuit

Taseko's New Prosperity mine project, which was rejected by the federal government L BIV archives

Taseko's New Prosperity mine project, which was rejected by the federal government L BIV archives

A bitter proxy battle between a dissident shareholder group and key directors within Taseko Mines Ltd. (TSX:TKO) is escalating.

The shareholder group, collectively known as Raging River Capital LP, haslaunched a $110 million lawsuit in BC Supreme Court against three Taseko directors: Russell Hallbauer, Ronald Thiessen and Robert Dickinson.
Also named in the suit is Taseko corporate secretary Trevor Thomas and Hunter Dickinson Inc., a private mining house whose principals are also Taseko principals and directors.

Raging River is asking the court to find against those named in the suit over the acquisition of Curis Resources Ltd. They claim the directors were conflicted because they are also directors for Hunter Dickinson Inc. and held shares in Curis.

The suit alleges they benefitted from the acquisition to the detriment of other shareholders and that the acquisition was not approved through a shareholder vote.

“Raging River alleges that Taseko Mines' acquisition of the failing Curis – which included assets that proved to be essentially worthless – constituted a related party transaction, and that the failure by Taseko's board of directors to allow shareholders to vote on the acquisition constitutes oppressive conduct,” Raging River states in a press release.
Raging River is seeking $110 million in damages on behalf of shareholders.

For more on the Taseko-Raging River proxy war, read Taseko Mines shareholder proxy battle heats up.

Read article at Business in Vancouver

[email protected]