TORONTO (miningweekly.com) – Saskatchewan-focused potash project developer Karnalyte Resources on Thursday said it had received a shareholder-meeting requisition from company founder, former president, CEO and director Robin Phinney.
TSX-listed Karnalyte said the board was asked to call a special shareholder meeting to consider removing from office certain of the existing directors, and electing to the board nominees submitted by Phinney.
Karnalyte’s board said it would review the requisition.
The company, which has plans to develop the Wynyard carnallite project, had witnessed a flurry of top-management shuffles this year, starting with the abrupt departure of Phinney in May.
Karnalyte mid-last month installed New York-based investment banker Stephen Goodman as its new president and CEO, replacing Bruce Townsend, who was appointed to the same positions only in September.
Townsend himself replaced Thomas Drolet as president and CEO a mere month after Drolet’s roles were made permanent, after serving a spell as president and CEO in acting capacities from May, when he took over from Phinney.
During this time, the board had appointed three new directors without shareholder input.
Phinney owns about 14.6% of Karnalyte's outstanding common shares and had over the weekend formed a group of concerned shareholders representing about 22.16% of the outstanding common shares of Karnalyte. Phinney had retained Norton Rose Fulbright as counsel.
Karnalyte is currently looking to finance the construction of the 625 000 t/y first phase of its C$626-million Wynyard potash project.
The company’s TSX-listed stock on Thursday gained a penny to C$0.80 apiece, but had suffered a 56% decline in value since the start of the year.