News Feed Item

Concerned Shareholder of Auro Resources Corp. Wishes to Correct Misleading Information in Press Releases Filed by Management

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/24/12 -- Shareholders of Auro Resources Corp. (the "Company"), please take notice that:

Earlier today, management of the Company issued two news releases containing erroneous and misleading information.

In the first release, management of the Company (the "Management") reported on the outcome of an injunction application in the Supreme Court of British Columbia (the "Court") on Friday December 21, 2012 in the litigation proceeding involving Andrew Williams, a shareholder of the Company, (as Petitioner) and the Company as well as four directors of the Company (as "Respondents"). The management news release incorrectly suggested that the entire litigation proceeding against the Respondents was dismissed by the Court. Only the injunction application was dismissed by the Court on December 21, 2012.

Mr. Williams is a beneficial owner of 972,500 common shares of the Company, and he commenced the litigation against the Respondents by filing a petition in Court (the "Petition") on December 19, 2012. For more information regarding the application and the Petition, please see the news release "Shareholder of Auro Resources Corp. Files a Petition in the Supreme Court of British Columbia Against Company and Its Directors" filed by David Elliott, as the Concerned Shareholder, on December 21, 2012.

On December 19, 2012, Mr. Williams commenced a proceeding against the Respondents, seeking relief due to oppressive and unfairly prejudicial conduct by the Respondents to Mr. Williams as a shareholder. As part of that proceeding, Mr. Williams made an application to the Court on December 21, 2012 for certain interim injunctive relief, from the date of the hearing to the date of the upcoming annual general and special meeting of the shareholders of the Company to be held on January 3, 2012 (the "AGM"). It was that injunctive relief application alone that was dismissed by the Court, on the basis that any damages suffered by Mr. Williams during that period of time could be compensated through an award of damages.

The Concerned Shareholder wishes to make clear that no decision was made by the Court in relation to Mr. Williams' Petition, which was not ruled upon by the Court, contrary to what was implied by the Management news release. Mr. Williams intends to pursue that Petition against the Respondents, and will not be abandoning any aspect of that Petition.

The second news release issued by the Management earlier today responded to the information circular (the "Dissidents Information Circular") and certain press releases filed by David Elliott, a Concerned Shareholder of the Company. The Concerned Shareholder believes that this release also contains erroneous and misleading information.

Throughout their two press releases, Management implies that the Concerned Shareholder is responsible for putting in the prior management of the Company, which was replaced on November 16, 2012. These statements are not true. John Gomez, the prior CEO of the Company, was previously CEO of White Gold Corporation, which was acquired by the Company in July 2011. Mr. Gomez became part of the management of the Company by virtue of his previous role in White Gold Corporation and not through the actions of the Concerned Shareholder. Furthermore, Mr. Gomez does not form part of the slate of directors proposed by the Concerned Shareholder.

Management also implies that it was the previous Management under Mr. Gomez that was responsible for the problems raised by the Concerned Shareholder. These implications are entirely unfounded. Mr. Gomez became the CEO of the Company on June 18, 2012, only six months prior to the date of the Dissident Information Circular. The share price of the Company, on June 18, 2012, was $0.04. This represents a drastic decline of 85% from the share price of $0.26 in December 2010. This decline represents 96% of the decline mentioned by the Concerned Shareholder under the heading "Reasons for a Change of Management" in the Dissident Information Circular.

The Concerned Shareholder would like to underscore that the following Management nominees were involved with the Company during the entire period of decline mentioned above:

--  Mark Lawson - Chief Executive Officer of the Company from October 3,
    2008 to June 18, 2012 and a Director of the Company since October 3,
--  Len Davies - Chief Financial Officer of the Company from September 20,
    2006 to November 16, 2012 and a Director of the Company since September
    19, 2006; and 
--  Mario Concha - Director of the Company since November 4, 2008. 

The problems raised by the Concerned Shareholder have been persistent for a number of years and Management has no factual basis for implying that the problems were caused by the recent actions of Mr. Gomez.

Certain language in the Management press release suggests that the Concerned Shareholder was part of the prior management of the Company. The Concerned Shareholder would like to clarify that he has never been, nor does he intend to be, a member of the management or the board of directors of the Company.

Management suggests that the Petition filed by Andrew Williams was intending to "temporarily financially cripple" the Company. On November 7, 2012, the Concerned Shareholder, Mr. Williams, and their investment group purchased 13,832,583 common shares of the Company by investing approximately $415,000 to keep the Company financially viable by allowing it to make payments on its Colombian properties and supplying it with much-needed working capital. The Concerned Shareholder has no incentive to "financially cripple" the Company and has only shown the opposite intention by investing approximately $415,000 in the Company. By contrast, Management made no investment in the November 7 private placement, and reportedly holds an aggregate of 56,000 shares of the Company, which represents an estimated investment of only $1,500 based on today's closing price. As evidenced by their shareholdings, the interests of Management and the current directors do not align with those of shareholders.

Management attempts to discount its, and current directors', responsibility for setting the record date for the AGM at two days prior to the closing of the placement of 13,832,583 common shares of the Company. The majority of the directors of the Company approved both the information circular for the AGM, and the record date. In their first press release, Management also attempts to discount its, and current directors', responsibility with respect to the private placement that closed November 7, 2012. Management claims that "none of the present management and none of the named directors had dealt with the private placement and the Exchange." This claim by Management is misleading as it ignores the fact that the directors voted to approve the private placement and therefore must have had an appreciable degree of involvement with the placement as part of their responsibilities as directors.

Management claims that Doug Dray, current Chief Financial Officer of the Company, agreed that the Company needs "a professional and seasoned team to step forward and lead the Company." This statement is not supported by the actions of Management, as three of the four Management nominees are current directors.

The Concerned Shareholder believes the news releases filed by Management earlier today contain misleading statements, and that this is further evidence of the management attempting to entrench itself by any means.

On December 20, 2012, the Concerned Shareholder of the Company announced that he has filed the Dissidents Information Circular with Canadian securities regulators and has initiated a proxy solicitation process with the objective of having a new board of directors elected at the AGM. Copies of the Dissidents Information Circular have been mailed to shareholders and are available online at www.sedar.com under the Company's profile, or by contacting Laurel Hill Advisory Group.

The Concerned Shareholder encourages the shareholders of Auro Resources to vote their GREEN proxy prior to December 28, 2012 at 5:00pm Pacific Time. You may support the Concerned Shareholder in this way even if you have already completed and signed a white proxy distributed to you by management of the Company. YOU MAY CHANGE YOUR VOTE BY SUBMITTING A GREEN PROXY WITH A LATER DATE. A LATER DATED GREEN PROXY AUTOMATICALLY REVOKES ANY EARLIER PROXY. If you have any questions or need assistance in voting your shares please contact the Concerned Shareholder's proxy solicitation agent, Laurel Hill Advisory Group 1-877-452-7184, collect 416 304-0211 email: [email protected].

David Elliott, Concerned Shareholder

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.