Carpentaria chair urges vote against board spill
PERTH (miningweekly.com) – Junior developer Carpentaria Exploration on Tuesday called on shareholders to reject an attempt by major shareholder Silvergate Capital to gain control of the company’s board.
In a letter to shareholders, Carpentaria chairperson Dr Neil Williams asked shareholders to vote against resolutions that would be put by Hong-Kong-owned Silvergate at a general meeting it had requisitioned for November 10.
Williams stated that Silvergate would attempt to remove four board directors, including the chairperson and MD, and to reduce board membership from five to three directors, of which two would be Silvergate nominees.
This is the third time in two years that Silvergate had attempted to requisition a meeting to remove the majority of the board and instal its own nominees, Williams added.
“Silvergate has not offered any credible reasons why this would be good for all shareholders. On the contrary, your board strongly believes that it could harm the long-term value of your investment,” Williams said.
Silvergate is wholly owned by Ample Source International (ASI), which is also the controlling shareholder in Pure Metals, Carpentaria’s joint venture partner in the Hawsons iron project, in New South Wales.
“Shareholders should understand that, with control, Silvergate would have the ability to advance the economic interests of its owner ahead of the interests of other Carpentaria shareholders,” Williams warned.
He noted that the Carpentaria board had offered Silvergate several times the “meaningful representation” it had been demanding, in recognition of its 17.6% shareholding, by welcoming a Silvergate nominee for appointment to the board.
“The fact that this offer of proportional representation has been rejected several times over the past two years suggests that Silvergate is only interested in control,” he said.
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