04/10/2019 - 14:43

Metals X fights back against major shareholder

04/10/2019 - 14:43

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Copper and tin miner Metals X is set to reject a motion by its largest shareholder, APAC Resources, to appoint a representative to its board.

Metals X fights back against major shareholder
Metals X's Nifty copper operation is in the East Pilbara.

Copper and tin miner Metals X is set to reject a motion by its largest shareholder, APAC Resources, to appoint a representative to its board.

In a statement, Metals X said Hong Kong-based APAC’s intended proxy on the board, Brett Smith, did not have the background, experience and qualifications appropriate for the role.

Additionally, Metals X said he declined to be interviewed.

The resolution for Mr Smith’s appointment will occur at the company’s annual general meeting on October 24.

Metals X managing director Damien Marantelli was critical of APAC’s moves to get Mr Smith on the board.

“The move by APAC Resources to appoint one of its executives to the board and its proposal to undertake a further review of Nifty, when we are on the cusp of delivering some meaningful changes in line with the reset plan, is both extremely disruptive to the plans currently being progressed and returns the business to ground covered in a thorough previous assessment conducted at the time that management changes were made,” Mr Marantelli said.

On September 2, Metals X non-executive director Milan Jerkovic resigned from the board and chariman Peter Newton indicated he would step down at its annual general meeting.

A day later the company told the ASX it had received a 249D notice from major shareholder APAC Resources requesting Brett Smith be appointed to the board as a director and Mr Newton resign.

Mr Smith is a non executive director of Tanami Gold and Prodigy Gold, as well as the executive director of APAC and Dragon Mining.

Hong Kong-based APAC urged other shareholders to support the motion, stating a board refresh is needed as the company has spent $143 million on Nifty since acquisition but production has more than halved.

Also last month, Metals X launched a $32.7 million capital raising as part of a "reset plan" to turn around its struggling Nifty copper operation in the East Pilbara.

Shares in Metals X were down 2.78 per cent to trade at 18 cents each at 3.30pm AEST.

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