PERTH (miningweekly.com) – ASX-listed Kidman Resources has called for a shareholder meeting of fellow listed KBL Mining to allow for a vote on the removal of the entire KBL board, after chairperson Jim Wall on Wednesday adjourned the company’s annual general meeting (AGM) until November 28.
Kidman said that the AGM was adjourned without warning or exploration, and the adjournment meant that KBL shareholders were unable to vote on a resolution to re-appoint Wall and nonexecutive director Greg Starr to the KBL board.
Kidman was proposing that Wall and Starr, as well as MD Brian Wesson and nonexecutive director Bob Besley be removed from the KBL board, to be replaced by Tony Davis, Melanie Leydin and Mark Muzzin.
Davis is currently the COO of Unity Mining while Leydin is the joint company secretary for Kidman. Muzzin holds a number of directorships in private companies and is a nonexecutive director of ASX-listed Ishine International Resources.
Kidman said it was attempting the board spill in order to protect its own interest as a shareholder of KBL and as the secured debt holder.
“It is concerning that KBL’s financial position has deteriorated drastically. Further, as Kidman has totally rejected the only proposed restructure of its secured debt put to it by KBL, it is concerned there is no current viable proposal for the repayment of its debt, or to fund the expansion of the mining operations at Mineral Hill,” Kidman said in a statement.
Kidman last week became a major shareholder in KBL after taking over a A$12.6-million debt from Capri Trading. The debt was secured against all of KBL’s assets, including its operating Mineral Hill base metals mine, in New South Wales, and its Sorby Hills lead/silver deposit, in Western Australia.
The ASX-listed company said on Wednesday that if its bid to spill the KBL board was successful, it would ask the new KBL board to undertake a thorough operational review of the company’s financial position and its operations, including the Mineral Hill mine plan.