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Gold bars.MICHAEL DALDER/Reuters

The finger-pointing between Timmins Gold Corp. and asset manager Sentry Investments Inc. heated up on Friday with each company accusing the other of acting in bad faith.

The two companies are at odds over the leadership of Timmins. Toronto-based Sentry, which has a 17-per-cent stake in the gold producer, said Monday that it will seek to replace six of the eight-member board of directors with experienced former mining executives who would provide new ideas and independence to the board. Sentry said the recent mismanagement and missed targets at Vancouver-based Timmins had "eroded shareholder value."

One of Sentry's initial complaints is that Timmins didn't respond appropriately to interested buyers. Sentry alleges that Timmins ignored potential acquirers who wanted to take a closer look at the company.

Timmins responded Friday by saying that it did just the opposite. The company said it brought a suitor's non-binding proposal before the board and allowed the interested party the opportunity to undertake due diligence, but no binding offer to acquire the company was ever made. Timmins added that it has allowed "numerous parties" access to information after they signed confidentiality agreements and tour its mine in the state of Sonora, Mexico.

Timmins went on to say that Sentry isn't playing nice in working out a deal. Sentry "rejected our good-faith efforts," said Paula Rogers, chair of a new special committee of independent directors that will oversee the proxy contest at the gold miner. The two sides had discussions last week, Timmins said, and "Sentry refused any compromise."

Wes Hall, head of of Kingsdale Shareholder Services and a spokesman for Sentry, said the firm did not "demand all or none" and was open to negotiations.

The company's annual shareholder meeting will take place on July 31, but Timmins has previously said it is seeking an extension until Sept. 23.