After ditching and then launching a fresh rights issue, flagging a new board and a name change, embattled gold minnow Crater Gold Mining has now jettisoned its new chairman — before he started.

Perth-based Crater (ASX:CGN) said Alex Molyneux — a non-executive chairman at both Argosy Minerals and Azarga Metals Corp — would no longer be coming aboard.

“It has become clear that Mr Molyneux, previously proposed to become the chairman of the company, would no longer be taking that role, or having any ongoing involvement with the company,” Crater said.

“The board takes this opportunity to thank Mr Molyneux for his efforts with regard to the recent rights issue and wishes him the very best with his future endeavours.”

Mr Molyneux would taken the reins from current chairman Sam Chan after wrapping up a $15 million rights issue to pay off debt and fund exploration on its PNG-based projects. Patersons Securities partially underwrote the rights issue.

However, the rights issue was binned after it became was clear there was insufficient take-up of rights by existing shareholders to trigger underwriting obligations.

Crater is now seeking to raise $12.2 million via a fresh rights issue fully underwritten by Freefire Technologies, a company associated with Crater’s current chairman Mr Chan.

Freefire is also providing a $2 million loan to keep Crater’s creditors at bay while the fresh rights issue is carried out.

Companies normally turn to rights issues when they are in dire need of cash. In these rights offerings, companies grant shareholders a chance to buy new shares at a discount to the current trading price.

When a rights issues is partially or fully underwritten, it requires the underwriter to subscribe for any shares offered but not taken up by shareholders.

Crater said career geologist Dorian L. (“Dusty”) Nicol and Robert Usher would have ongoing involvement with the company.

The company also remained committed to its name change to Paradise Gold Mining.

Crater didn’t mention whether Mr Chan would remain in the role of chairman or whether someone else would be appointed to the position.

Stockhead is seeking comment from Crater.

The company’s flagship project is Crater Mountain, a potential multimillion ounce gold deposit located in the eastern highlands of PNG. Significant gold mineralisation has been discovered on the surface and at depth in drilling.

Shares in Crater finished trading yesterday unchanged at 0.9c with close to a million shares changing hands. The company has a market cap of around $21 million and cash of $291,000 as at the end of the June 2017.