Breaking News: CEO of Augusta Resource, the parent company of Rosemont Copper, is under fire for “exceedingly poor decision-making”, “gross failures of judgment” and “serious conflicts of interest”

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More damaging information is emerging about Augusta Resource Corporation’s executive leadership, this time for Augusta President and CEO Gil Clausen.

Angry shareholders of Jaguar Mining Company, Inc. are seeking Clausen’s resignation from Jaguar’s Board of Directors at the June 29 annual meeting. Jaguar is a Canadian incorporated gold mining company with operations in Brazil and corporate headquarters in Concord, NH.

Bristol Investment Partners, LLC, the largest shareholder of Jaguar, released a sharply worded letter today (click here) criticizing Clausen and two other Jaguar directors for “exceedingly poor decision-making and gross failures of judgment” and “serious conflicts of interest that impugn” their abilities to serve as directors.

Bristol cites the three directors’ handling of an all-cash offer last November by Shandong Gold Group to buy Jaguar for $9.30 a share. The offer represented a 73 percent premium over Jaguar’s share price of $5.39.

Jaguar did not accept the Shandong offer, which Bristol says was an “ill-advised and reckless gamble” that “backfired completely, inflicting enormous damage on Jaguar’s shareholders.”

Bristol claims that Clausen and directors Gary German and John Andrews stood to reap millions of dollars in stock benefits if Jaguar was sold for $10 a share or more. Clausen, German and Andrews are the “Lead Directors” of Jaguar.

“Clearly, the interest of the Lead Directors were substantially misaligned with the interests of shareholders as the Lead Directors assessed the US$9.30 change of control proposal from Shandong,” the letter states.

The Jaguar shareholder revolt could raise problems for Augusta, where Clausen is the highest profile executive of the company whose subsidiary, Rosemont Copper, is seeking to a build a massive open pit copper mine in the Santa Rita Mountains south of Tucson.

Augusta has been unsuccessful in a more than two-year effort to secure $400 million in long term debt financing for the Rosemont project.

[Click here for the Bristol Investment Partners’ press release]

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5 Responses to Breaking News: CEO of Augusta Resource, the parent company of Rosemont Copper, is under fire for “exceedingly poor decision-making”, “gross failures of judgment” and “serious conflicts of interest”

  1. Mike H8 says:

    Sounds like a shady deal from start to finish.. And people actually want this kind of business practice in Arizona?

  2. Arizona resident says:

    Arizonans want jobs, but not at the hands of an outside company that will degrade the environment.

  3. Concerned Vail Resident says:

    Gil Claussen has lied to our community so many times that it is hard to believe anything Rosemont Copper promises. He swore that Rosemont had no intention of mining anything but the one proposed pit. We now know that they will have four open pits and they have said that once the first one is started the scenic views will be ruined and it will then be easier to have the next three pits approved. NO THANKS GIL!

  4. A. J. Perrin says:

    Rosemont Mining ia putting up and underwriting candidates for all the Supervisor seats in our county to attempt to change the majority on the Board to override the negative vote on approving of the copper mine. They are planning to outspend any of the present Supervisors in an attempt to vote our present elected officials out of office and put their bought and paid for minions into control. This must be stopped.

  5. Richard Calabro says:

    Thank you “Rosemont Mine Truth”. Your good work in bringing this to the attention of your readers is very much appreciated.