Eshuys plans St Barbara future

The new managing director of gold miner St Barbara Mines has highlighted the company’s future potential after winning a bruising boardroom stoush.

Joseph Gutnick’s former chief geologist, Ed Eshuys, has joined St Barbara as managing director and Colin Wise has joined as chairman.

Shareholders backed the new directors at a meeting this week that also voted former executive chair-man Stephen Miller off the board.

The board spill was engineered by US-based investor Resource Capital Fund, which has a 22.6 per cent share-holding in the struggling gold miner.

RCF had previously been a supporter of Mr Miller, who had proposed a range of restructuring moves over the past two years designed to create a global mining house but eventually lost patience with his failure to deliver.

Mr Miller did not attend the extra-ordinary general meeting to defend his position and his board colleague Kevin Dundo resigned on Sunday.

After the meeting he issued a statement in which he acknowledged “the majority of shareholders are in favour of a reconstituted board as proposed by Resource Capital Fund”. 

Mr Eshuys and Mr Wise join existing directors Hank Tuten and Mark Wheatley on St Barbara’s board.

Mr Eshuys said there were great opportunities at St Barbara’s Meekatharra operations, particularly at Paddy’s Flat.

Most of the drilling by St Barbara has been to a depth of only 100 metres, yet the area has historically been a major gold province.

At a time when many gold stocks have been top performers, St Barbara’s share price has drifted south to about five cents.

In the midst of the boardroom fight the company raised $2.48 million this week through a private placement, albeit at a price of 4.2 cents.

Mr Eshuys is best known for his involvement in the development of the Bronzewing and Jundee gold discoveries for Great Central Mines.