Shandong Gold increases control of Focus

China-based Shandong Gold looks set to secure board control at Focus Minerals, after acting chief executive and chairman Don Taig announced his intention to resign from the company.

Mr Taig made his announcement after Shandong supported a big protest vote at today's annual meeting, and follows an earlier announcement that long-serving non-executive director Phil Lockyer will also leave the company.

Shandong nominees Jisheng Lu, Yuhuan Ge and Wanghong Yang all had their board positions ratified at today's meeting, giving the company a majority of seats on the five-member board.

Following the announcement late on November 29 Focus accepted the announcement of Mr Taig's resignation.

With the departure of Mr Taig the board moved to seperate the roles of chief executive and chairman and has made two new appointments.

Mr Lu has been appointed chairman of Focus, who is also the chairman of Shandong Gold and Mr Yang has been appointed interim chief executive.

Mr Taig's decision followed the vote on Focus’s remuneration resolution, with shareholders delivering an 82 per cent ‘no’ vote at today’s meeting.

“I know I leave a sound base upon which to build," Mr Taig said.

“I have never believed in hanging around to get in the way of new thinkers, hence why I will step down from the board as well."

Majority shareholder Shandong Gold indicated it instructed its proxy to vote against the remuneration resolution.

Focus Minerals completed a $225 million placement to China-based Shandong Gold in December 2012 at 5 cents per share, which took Shandong’s stake in the company to 51 per cent stake.

The share price subsequently dropped to its current mark around 1 cent, as the sector struggles with falling gold prices, which have led to the closure of Focus’s Laverton, Widgiemooltha and Coolgardie mines.

Shares in Focus are trading at 1.2 cents per share as of 12pm, WST.