Keith Piggott Vindicated as Supreme Court of British Columbia Rejects Titan Arrangement; a Clear Win for Core Gold Shareholders; Each Member of the Core Board Is Urged to Proceed With a New, Value-accretive Financing Proposal
TSX VENTURE: CGLD
QUITO, Ecuador--(BUSINESS WIRE)--Keith Piggott, owning approximately 7% of the issued and outstanding shares of Core Gold Inc. ("Core Gold" or the "Company") (TSXV: CGLD, OTCQX: CGLDF) provides an update on the recent Court decision in British Columbia dismissing the Titan arrangement and related matters.
On July 4, 2019, Mr. Justice Joel R. Groves of the Supreme Court of British Columbia rejected Core’s petition finding that Core had failed to establish that the arrangement with Titan was fair and reasonable. The reasons were delivered orally with a written transcript to follow.
“This important decision by the Supreme Court of British Columbia, decisively dismissing the arrangement with Titan as not being fair or reasonable, validates the campaign I have relentlessly pursued since the Core Board embarked on its ill-advised, costly and value-destroying adventure,” said Mr. Piggott. “A week has gone by since the Court’s decision. Going forward, each member of the Board, being cognizant of his potential personal liability, needs to urgently focus on the best interests of the Company: The Board has a fiduciary responsibility to pursue viable, value accretive alternatives including the financing proposal I presented during the Court hearing last week which also contemplates much needed changes in the composition of the Board.” This and other possible offers are being held up by the Core Board, as Titan is entitled to a break fee originally negotiated by the Core Board until the 31st July. This break fee falls away as soon as the Board correctly terminates the Titan arrangement.
It is very rare in Canada for a Court to dismiss an arrangement. The Court specifically commented on the uncertainty surrounding the value and liquidity of Titan’s shares and that the Court was satisfied, on a balance of probabilities, that the allegations against Titan (except as to a complaint as to the use of firearms) had been conceded by the proponents for the most part as being at least partially true. The Court also noted it was satisfied that Mr. Piggott had been wrongfully dismissed for opposing the Titan transaction and possibly defamed by Core and its directors in their published news releases and information circular.
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