15/11/2018 - 11:54

Vimy Resources announces major restructure

15/11/2018 - 11:54

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Uranium explorer Vimy Resources has announced a major restructuring, including the resignation of three directors, further cost-cutting and a focus on its base metals project.

Vimy Resources independent non-executive chairman Cheryl Edwardes

Uranium explorer Vimy Resources has announced a major restructuring, including the resignation of three directors, further cost-cutting and a focus on its base metals project.

Vimy has identified a region to the northeast of its Mulga Rock uranium project in Western Australia thought to be prospective for base metals such as lead and zinc.

The exploration will be carried out by a new wholly-owned entity, Vélo Resources Pty Ltd.

Vimy is aiming to structure a future co-investment or divestment of Vélo and will consider a farm-in, merger or an initial public offering.

The company said the ownership structure of the base metals acquisition would allow Vimy to maintain its focus on uranium exploration and development at Mulga Rock and its recently acquired Alligator River project in the Northern Territory.

Vimy is continuing its focus on these projects despite weakening in the uranium price.

Leadership changes were also announced this morning, with non-executive directors Vanessa Guthrie and Andrew Haslam and executive director Julian Tapp tendering their resignations from the board.

Mr Haslam will remain as Vélo’s non-executive chairman and Mr Tapp will continue in his role as chief nuclear officer.

Dr Guthrie is the shareholder nominee representative of Resource Capital Funds VI LP, which indicated it does not require board representation.

The restructure will leave the board comprising: Cheryl Edwardes as independent non-executive chairman; Mike Young as managing director and CEO; David Cornell as an independent non-executive director; and Malcolm James as a non-executive director and the representative of shareholder Forrest Family Investments.

The leadership changes will take effect after the company’s annual general meeting on Friday November 30.

On June 29, Vimy advised cost-cutting measures would include a loss of 20 to 40 per cent in remuneration for executives.

It announced today the pay cut would be an average of 35 per cent effective November 28.

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