SOUTH Australian gold miner Havilah Resources’ (ASX: HAV) non-executive directors Mark Stewart and Martin Janes have resigned.
The announcement comes following the company’s Extraordinary General Meeting (EGM) on September 12, when a proposed investment in Havilah of up to $100m by SIMEC was vetoed by the company’s technical director and majority shareholder Chris Giles, through his privately-owned business Trindal, even though the offer had not been blocked by shareholders.
In a statement, Mr Stewart and Mr Janes said that they were blindsided by Dr Giles, who had previously given his support for the investment.
“The investment was rejected despite the Independent Export Report concluding that ‘the position of Shareholders if the transaction is approved is more advantageous than the position if the transaction is not approved,’” they said.
“We are deeply disappointed by this outcome and are of the opinion that the intended reversion to Havilah’s prior business model is not in the best interest of all shareholders and as such we are not prepared to support that approach or to continue to remain on the board of Havilah.
“Given this situation and our lack of confidence in the future of the company, we can see no alternative but to step down and to let Dr Giles and Dr Johnson, as the dominant shareholder block, determine the future of Havilah.”
The company said that Mr Stewart and Mr Janes had spent weeks since the EGM ensuring that staff retrenchments were managed appropriately, and that arrangements were put in place to ensure the company was adequately funded in the short term.
New directors Victor Previn and Simon Grey were appointed in the place of Mr Stewart and Mr James.
