The Tsilquotin First Nation has gotten involved in the bitter proxy fight between Taseko Mines and its shareholders.
“[Taseko]’s current management has been consistently disrespectful to the Tsilhqot'in Nation by advancing the Prosperity project over the strong objections of our people, in a place of such profound cultural and spiritual significance, and by refusing to enter into a meaningful [benefits agreement] to fairly compensate ?Esdilagh [the community closest to the Gibraltar mine] for the impacts of their existing mine, Gibraltar,” the Tsilquot’in Nation’s letter reads in part.
The shareholder group suing Taseko is collectively known as Raging River Capital LP and has launched a lawsuit in BC Supreme Court against Taseko Mines and three Taseko directors. The Tsilquot'in First Nation's letter to shareholders does not directly support that group, but says "it is time for a change."
Raging River alleges several acquisition decision made by Taseko’s board were not in shareholders’ best interest; Raging River has also sent a letter to the BC Securities Commission seeking an investigation into what it alleges is insider trading by two Taseko executives. Mark Radzik, managing partner for Raging River, has characterized Taseko as an overly-litigious company whose confrontational attitude affected its proposed New Prosperity mine.
That mine was rejected twice by the federal government over environmental concerns. The Tsilquot’in have been adamant in their opposition to the project. Taseko is currently appealing the environmental assessment panel’s decision to reject the project on the grounds of procedural unfairness.
In January, Taseko lost a defamation suit against the Wilderness Committee, an environmental group that had been critical of the Prosperity mine proposal.
In their letter, the Tsilquot’in First Nations argues that shareholders have paid the costs of Taseko’s attitude towards the First Nation communities who live in the area.
“The costs for shareholders of TML's management proceeding in the face of these clear warnings have been significant. Twice the Federal Government rejected Prosperity and then New Prosperity, each lengthy and expensive environmental assessment process resulted in a significant loss in market capitalization, in our opinion. In the lawsuit filed by TML on February 11th, 2016, the company states it has spent well over $130 Million on the failed permitting costs for both Prosperity and New Prosperity,” the letter reads.
In a March 31 information circular sent to shareholders, Taseko said it has had “a very successful relationship with First Nations at Gibraltar, including First Nations employees who make up approximately 10% of the workforce.”
“We respectfully and strongly disagree with this statement and we need to set the record straight so shareholders are fully informed about TML management's record in dealing with the Tsilhqot'in Nation,” the Tsilquot’in First Nation wrote. “We can only describe this record as disrespectful.”
In previous statements, Taseko has said Raging River’s lawsuit is without merit and has said it will mount a “vigourous defence” against the lawsuit. In statements on its website, Taseko has characterized Raging River as an “opportunistic” Chicago-based firm.
@jenstden
