PERTH (miningweekly.com) – The directors of gold junior Empire Resources have urged shareholders to vote against a proposed board spill at the company’s general meeting on July 24, saying that the requisition is a delaying tactic by parties owning the company A$1.02-million.
The Supreme Court of Western Australia earlier this week dismissed an injunction brought about by Empire’s joint venture (JV) partner, Brimstone Resources, to prevent the company from taking action under the mortgage and security documents over its interest in the JV and other properties, after Brimstone failed to make a A$1.02-million repayment to Empire.
Brimstone owed Empire some A$1.1-million, which was due on or before June 6, with the company repaying only a portion of this by that date.
Following the Supreme Court ruling, Brimstone has applied for a hearing before the Court of Appeal, with the court ordering that the appeal be heard on June 26.
In May, Empire received a request from 12 shareholders, holding an approximate 5% combined interest in the company, to call a general meeting in order to vote on the replacement of the current board.
The Empire directors later that month pointed out that the some of requisitioning shareholder were associated with directors of Brimstone.
Empire on Friday told shareholders that the company believed the requisition was opportunistic for Brimstone associates only, and was not in the best interest of all Empire shareholders.
The company warned that the proposed board spill could threaten the company’s share price.