Empire produces gold at its Penny Find project.

Empire shareholders seek board spill

Tuesday, 29 May, 2018 - 11:57
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A group of dissident shareholders at Empire Resources is seeking a board overhaul after requesting a general meeting to remove its three directors, including managing director David Sargeant.

The shareholders are seeking the removal of Mr Sargeant, along with recently appointed board member Lee Christensen and executive director Adrian Jessup.

Mr Christensen replaced Tom Revy, who resigned in April, last month. 

The group has also put forward resolutions to appoint Stephen Allen, Chris Banasik and Brett Fraser as replacements on the board.

Mr Banasik served on the board of First Graphene earlier this year. 

“The company will obtain the appropriate advice in relation to the validity or otherwise of the notice and if required undertake the necessary steps to convene a general meeting in compliance with the Corporations Act 2001,” Empire said in a statement to the ASX.

“Further details of any general meeting will be circulated to shareholders in due course.”

The notice was submitted by 12 shareholders, including Xavia Nominees, Scott Andrew McDonald, Matthew John Allen and Stephen Joseph Newberry.

In its statement, Empire drew links between the dissident shareholders and its joint venture partner Brimstone Resources.  

“The directors note that Paul Williams and Peter McDonald are associated with some of these abovementioned shareholders and are also associated with Brimstone Resources, the company’s joint venture partner in the Penny’s Find Mining joint venture,” the company said.

“Brimstone owes ERL approximately $1.1 million for unfunded contributions and interest relating to development costs for the Penny’s Find mine, known as the agreed expenditure amount.”

Payment is due by June 6.

Mr Williams has been the managing director of Brimstone since 2012.

Shares in Empire were flat at 1.5 cents each at 130pm AEDT.

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