2012-07-23_GENERAL DOCUMENTS - C1981012

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Dullvla the Glencore nationalization and that of Red Electrica that these wets `renationalizations' of previ- ously state -owned assets, and that private investment would be re- prising in that only a little more than a month ago an accord was signed with the government sup- porting the [Malku Khota] project and supporting the community, Cline hit hard by falling coal demand, suspends New Elk ops BY MATTHEW KEEVIL VANCOUVER — Global eco- nomic woes stemming from the Euro crisis and slowing industrial activity in some of the world's lar- gest economies are taking a toll on coal producers, with Toronto= based developer Cline Mining (CMK -T) halting operations at its New Elk metallurgical coal mine in southern Colorado just months after the project reached commer- cial production. The move shocked markets — Cline had recently filed an updated technical report on the property, and announced hiring chief operat- ing officer David Stone, who car- ries extensive underground min- ing experience from his time with Xstrata's (XTA -L) coal division. Cline suspended activities at New Elk on July 11, citing the need to "manage its cash position" while re- optimizing its mine plan. Ac- cording to company reports the suspension is expected to last for 60 days, though Cline left the deadline open to extension due to "the vari- ability of market conditions, and other economic factors making it impossible to project an exact per- sonnel return date with certainty." As a result of the c3`osure, Cline released a temporary layoff notice to 78% of its workforce — ac- counting for 183 workers out of its 235 - person operation. The company had already cut back its workforce by 70 people in mid - May owing to a challenging de- mand environment. "A combination of cash con- servation from the temporary sus- pension of operations and reduc- tion of our workforce will enable the plan to be properly developed and implemented efficiently and effectively," Stone commented following the announcement. "During this time, Cline has a sig- nificant stockpile of quality coal product and a workforce capable of loading the coal, should a sales agreement be made." See CLINE, Page 11 indigenous comuuuuiy. r11Gao . . social responsibility and commu- nity relations have been a real focus for the company. We take this whole area as an important it receives support from 43 of the 46 indigenous communities in the project area. See BOLIVIA, Page 2 Maudore, Roxgold enter the octagon with dissident shareholders BY IAN BICKIS VANCOUVER — Frustrated re- source investors are resorting to proxy battles as share prices lan- guish, with Maudore Minerals (MAO -V) and Roxgold (ROG -V) only two of the latest juniors to see shareholder revolts. The two have ample company, as investors blame management for declining stock prices in the bear market. Fights for board con- trol have taken place at a range of companies in recent months, from the high - profile fight over control of Baja Mining (BAJ -T) and its under - construction Boleo mine won by dissident shareholders, to the lower - profile fight over control of molybdenum junior Mosquito Consolidated Gold Mines (MSQ -V), won by management. Other companies recently sub- ject to proxy battles include Avion Gold (AVR -T), Jaguar Mining (JAG -T, JAG -N), Argonaut Ex- ploration (AGA -V), Mundoro Capital (MUN -T), MGold Re- sources (MNI -V) and Bison Gold Resources (BGE -V). While most battles were resolved at annual gen- eral meetings, the paper war is still raging at Maudore, and just starting up at Roxgold. At Maudore, shareholders own- ing about 18% of shares and led by Rex Harbour have portrayed the current board of directors as lack- ing technical experience and therefore incapable of driving the company forward. Current CEO Ronald Shorr has countered that the Rex Harbour group are at- tempting a "stealth takeover" of the company by imposing an entirely new board that is "inexperienced and beholden to Mr. Harbour." The two sides are arguing over who is best positioned to advance the company's high -grade Com- tois gold project in Quebec to- wards production. The Harbour group say that after seven years of exploration the company still does not have an See DISSIDENT, Page 14 largest gold producer in the we combined with his leadership l ities," outgoing president and ( Rick Van Nieuwenhuyse c mented following the hire, "r ing him the right person at the time to take the helm at Nova( as it enters its next phase of velopment to become a signifi( North American gold produc NovaGold filed the Do See NOVAGOLD, 1 PM40069240 — PAP Registration #0! 0 744 70 70331 1113NIW Na3HL8ON 3H1 Z60Z'6Z-EZ Alflf 0h,