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October 31, 2006

Another big day for Rob McEwen, Tues., Oct. 31, 2006, 11:53 AM

Tomorrow is a big day for Rob McEwen in his battle for shareholder rights. He's taking his appeal (of the Superior Court decision of a week ago) back to Superior Court. Tomorrow, he's also running a full-page ad in Canada's National Newspaper, the Globe & Mail.

Interviewed by Lisa Oake on ROBTV's Market Morning at about 10:40am ET today (which will be available on Replay), McEwen was asked: "This is expensive; how far are you prepared to go?"

His reply, in typical McEwen style: "How far is Goldcorp prepared to go to stop the shareholders from having a vote (after they decided to issue 67-pct of the shares on a material purchase they have not informed the owners about)?"

The interviewer then made a statement that McEwen after all this effort had just 10-pct of the vote to which McEwen replied that doesn't mean the company has 90-pct. In fact they don't own the voice of the owners without a vote. That's why we have votes of the shareholders, and that's what this dispute is all about.

McEwen's contention, and mine, is that if the Ontario court decides to permit corporate acquisitions without owner approval where more than 20-pct of the shares are issued, then Ontario (and hence Canada) will become a jurisdiction at odds with the U.S., Europe, Hong Kong, and so forth.

That may be good for the lawyers and corporations in Canada, but it is clearly placing the shareholders (including foreign shareholders) of Canadian-headquartered companies at a disadvantage, and where they are disadvantaged, people will find alternatives.

The issues are clear. They will be laid out for the average Joe in the full-page ad that will run in tomorrow's Globe & Mail, and they will be presented to a tribunal of three judges in court starting at 10:00am.

Why McEwen has to do this on his own dime is beyond me. Those so-called defenders of shareholder rights in Canada, the Ontario Securities Commission and the Toronto Stock Exchange, were absent the first court hearing.

That one was a block further away, on University Avenue. This one is at Courtroom 3 at Osgoode Hall, 130 Queen Street.

Do you think that the OSC and the TSX could at least send a single representative the 200 yards over to the courtroom, or are they going to continue to send the message they serve only lawyers and corporations?

I would expect that McEwen will make a pdf image of his ROB ad available at his website. I see he has posted "Top 5 Reasons Goldcorp Shareholders Need A Vote". He is also asking you -- all international traders -- to support your rights as shareholders by taking certain actions.

He has also posted the McEwen Factum as well as those of Goldcorp and Glamis. The whole case is laid out.

During the TV interview, I see that McEwen listed support of another of Canada's largest investment companies, NatCan, which holds 4.53 million shares of Goldcorp.

The Glamis vote was approved (Who wouldn't look a gift horse in the mouth?) but that approval must be validated by a judge at the BC Supreme Court, which I gather would not be done, as a courtesy among judges, as long as this issue is still before the court.

Earlier today, I wrote about a chihuahua when referring to another gold operator. Trust me, this McEwen is a bulldog. I don't know how long this matter is going to stay before a court. But I do know that all shareholders are benefiting.

And it's about time.

I'll be in that courtroom tomorrow, but for now I'm on my way to a doctor's appointment, where I get to discuss another of life's ills, skin cancer.

Posted by Posted by Bill Cara on October 31, 2006 11:53:17 AM | Category: Community Chat

Discourse

Thanks for the update Bill,

I'm both a GG and GLG shareholder. I wonder how this will play out in the stocks. I imagine GG is going to rise and GLG drop if McEwen manages to get a shareholder vote.

On another note, I hope the doctor has good things to say regarding the melanoma, and that the worst is behind you.

Posted by: Fazeli [TypeKey Profile Page] at October 31, 2006 3:26 PM [link]

"The Glamis vote was approved (Who wouldn't look a gift horse in the mouth?) but that approval must be validated by a judge at the BC Supreme Court, which I gather would not be done, as a courtesy among judges, as long as this issue is still before the court."

GG manaqement has definitely put their ducks in a row by having the BC Supreme Court immediately available to be of assistance to the BC based Glamis shareholders who stand to gain so much at the expense of GG shareholders. I read yesterday that on the day following the Glamis vote the BC court rubber-stamped the vote and by doing so will thereby influence to some degree the Appeal in Ontario. Canadian corporate law has become the territory of rogue managers who use the regulatory loopholes, toothless enforcement and the aging statutes that still exist only because they benefit the few at the expense of the many. The "Insolvency Game" is another legal playground where CCAA and other tools are used to remove the ownership and influence of corporations from the hands of shareholders. I suppose if greed didn't trump common sense, those from outside Canada wouldn't bother to particpate in such a capital market where the hidden risks are so great?

Posted by: TerryC [TypeKey Profile Page] at October 31, 2006 3:51 PM [link]

I'm so glad that Rob is fighting this for all of us, whether you own GG or not. It's a fight of principle. If Rob loses this fight, I will put Canadian companies in the categories of Latin America and/or Africa. I will definitely hesitate to invest into Canada from now on.

Posted by: 1stMillionAt33 [TypeKey Profile Page] at November 1, 2006 2:01 PM [link]

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