MDL seeks to shake up Teranga Gold’s board
PERTH (miningweekly.com) – Dual-listed Mineral Deposits Limited (MDL) has suggested a makeover of the board of Teranga Gold, in which it owns a 16.3% shareholding.
MDL noted that since Teranga’s formation in late 2010, the company’s value had declined by nearly 30%, with the share price falling from A$2.97 to a low of A$0.68 a share in late May.
MDL also accused Teranga of excessive exploration spend, with the ASX- and TSX-listed gold explorer spending nearly A$18-million on exploration during 2012.
The MDL also expressed governance concerns, saying that a number of highly questionable defensive tactics have been implemented by the incumbent directors to entrench their position, which showed a clear disregard for shareholder rights.
MDL is proposing an addition of three directors to Teranga’s board. The company said that the election of its nominees – MDL executive chairperson Nic Limb, its MD Rick Sharp and president of Toll Cross Securities Rodger Gray – would set Teranga on a more disciplined course of action that would yield substantial financial and operational improvements.
Teranga’s annual general meeting has been scheduled for June 26, in Toronto.
Teranga recently launched a takeover offer for fellow Canadian miner Oromin Explorations, offering 0.582 of its own shares for every Oromin share held.
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