Afarak shareholders seek board’s dismissal

9th November 2017 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

JOHANNESBURG ( – A group of Afarak shareholders, representing 10.86% of shares and voting rights, has asked to convene an extraordinary meeting of shareholders, where it will seek to dismiss the board, the LSE-listed miner said on Thursday.

The meeting would further seek to address a number of issues, including a proposal to perform a special audit relating to Afarak’s administration and accounting for the financial years January 1 to December 31, 2015, January 1 to December 31, 2016, as well as for the financial year beginning January 1 until October 31, 2017.

“The special audit should investigate the activity of Afarak and its administration, as well as the legitimacy of the mentioned activity, in particular regarding and taking into account all business and legal actions between the company and its main shareholder Danko Koncar and his controlled corporations and other related parties,” the shareholders relayed in a letter.

Further, the shareholders would call for the election of a new board, independent of Croatian millionaire Koncar.

Finnish media earlier this week reported that documents known as the Paradise Papers have revealed that Koncar, who has a stated interest of 27% in Afarak, purportedly controls around 70% of the shares.

Further, Koncar allegedly gave millions of bonds to his nearest family to buy Afarak shares. The papers also state that Koncar had allegedly engaged in insider trading, while he was also engaged in a number of tax havens.

Afarak’s current board said it would discuss the received letter of request in the manner provided by the Finnish Companies Act.

The miner owns and operates the Stellite and Mecklenburg mines, as well as the Mogale processing plant in South Africa.