17/07/2015 - 15:43

RNI gets big protest vote

17/07/2015 - 15:43

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RNI shareholders lodged a big protest today, with many voting against resolutions at a general meeting, which was held three days after the debt-laden gold company extended the timing of its $25 million entitlements offer for a second time.

RNI gets big protest vote
RNI executive chair Miles Kennedy

RNI shareholders lodged a big protest today, with many voting against resolutions at a general meeting, which was held three days after the debt-laden gold company extended the timing of its $25 million entitlements offer for a second time.

The six resolutions put to the general meeting were all passed after a show of hands, or in one case after a poll of shareholders.

However, in votes lodged before the meeting, about 28 million shares were voted against the six resolutions.

Only 26.1 million shares were voted in favour of approving the issue of convertible notes to executive chairman Miles Kennedy in repayment of loans, and 30.5 million abstained.

There was an ever bigger protest against the issue of options to former managing director Royce McAuslane.

This resolution was withdrawn after Mr McAuslane resigned early this month.

The meeting was held as RNI and its lead manager GMP Securities endeavour to complete the $25 million entitlement offer, pitched at 2 cents per share.

The company’s share price has traded below that level almost constantly since 20 May, when the offer was announced.

The funds are needed so that RNI can repay its debt facility with Taurus Resources Fund on or before 7 August.

The entitlement offer originally was due to close on 16 June but has been extended a second time to 30 July.

RNI has been seeking to develop the wholly-owned Grosvenor gold project.

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