Dacha Strategic Metals Inc. (“Dacha” or the “Company”) (TSX VENTURE:DSM) (OTCQX:DCHAF) today cautioned all shareholders that Salida Capital LP (“Salida”), led by founder Danny Guy, acting together with Goodwood Inc. (“Goodwood”) is attempting to force a coercive, nil-premium takeover of the Company. Salida is among a group of dissident investors that are seeking to replace the entire Dacha board with seven connected nominees with no rare earth elements experience at the annual and special meeting of Dacha shareholders, to be held on November 28, 2012.
Dacha believes that Danny Guy, Salida and Goodwood are attempting to hijack the Company because of their own failed investment strategies. For example, Salida has a track record of underperforming benchmarks, presiding over significant investor losses over the past five years. As of September 30, 2012, Salida Strategic Growth Fund had lost 43.98%, 52.94% and 60.05% of its value for the one, three and five year periods, respectively, under the management of founder Danny Guy. Likewise, Salida Wealth Preservation Fund was down 10.13% for the one year period as of that date. (1)
Scott Moore, Dacha President and CEO, said, “Under Danny Guy’s leadership, Salida’s negative performance record speaks for itself. With no rare earth elements experience and questionable track records, the entire Goodwood and Salida group of nominees present tremendous risk to the future of Dacha. We urge Dacha shareholders not to hand the Company over to Salida and Goodwood. Dacha’s nominees, including Jim Rogers, have the experience and skills to best represent the interests of all Dacha shareholders and we urge shareholders to support them today.”
Dacha also noted that on November 6, 2012, Dacha commenced a court proceeding against Goodwood Inc., Salida Capital LP, Takota Asset Management Inc. and Longford Energy Inc. (collectively, the “Parties”), which have declared that they exercise direction and control in the aggregate over 31.5% of the outstanding shares of Dacha. The court application alleges that the Parties were “acting jointly or in concert” within the meaning of s. 91(1) of the Securities Act during their acquisition of common shares of Dacha without complying with the formal take-over bid and early warning requirements of Part XX of the Securities Act. Dacha seeks, among other things, an order of the court that the Parties violated Part XX of the Securities Act, by failing to make a formal take-over bid in accordance with section 94 of the Securities Act.
All shareholders of record as of October 15, 2012 are entitled to vote at the annual meeting, regardless of the number of shares held. Dacha encourages all shareholders to carefully review its Management Information Circular and other materials and vote only their BLUE Proxy by no later than Monday, November 26, 2012 at 10:00 a.m. (Toronto time) in advance of the proxy voting deadline. We urge you to discard any Proxy sent to you by Goodwood or its affiliates. Even a vote against the dissident nominees on Goodwood’s Proxy will cancel any previous Proxy submitted by you.
(1) Source: Salida Capital Website (http://www.salidacapital.com/)
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