Perth companies Arafura Resources and Raisama have both slashed the size of their board of directors, in order to cut costs as they continue long-running negotiations over the funding and development of their respective projects.
Arafura said today that managing director Steve Ward has stepped down, directors Lloyd Jones and Loretta Reynolds have elected to retire, while Ian Laurence and Terry Jackson, who were due to retire from the board at the next annual meeting, will retire early.
That leaves the company in the hands of chairman Ian Kowalick, who also disclosed today that development work at its Nolans rare earths project has “identified some issues for which it will take more time to refine solutions”.
This news follows the cancellation of a $74 million rights issue last November, triggered by a slump in the company’s shares below the offer price of 60 cents.
“Given these circumstances, the company will focus its available capital on activities aimed at resolving outstanding technical issues and progressing current discussions with international investors with a strategic interest in rare earths,” Mr Kowalick said in a statement,
The news was not so dramatic at Raisama, which is seeking to develop the Cadlao oil project in the Philippines.
The company had been targeting production in the first quarter of this year but that timetable has slipped, with production now expected “later this year”.
Raisama is also continuing discussions over a US$30 million project debt facility through Philippines based Legavi Holdings Inc.
In the meantime, it has announced that David Berrie will relinquish his executive duties and become non-executive chairman, while Guy Cowan and Chris Reindler will resign from the board.
“The board restructure reduces Raisama’s overhead costs and provides the flexibility to appoint directors in the future who will assist in realising the company’s oil and gas strategy,” it said.
Raisama managing director Jeff Steketee continues in that role.
Arafura’s share price slumped 1.5 cents today to 33.5 cents while Raisama was steady at 11.5 cents