Downvotes galore as shareholders lose patience with explorers
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Shareholders are getting tough on explorers and miners, with several receiving first strikes against their remuneration reports and directors getting the chop in the latest round of annual general meetings.
Globe Metals & Mining (ASX:GBE) shareholders voted to spill the Africa-focused niobium explorer’s board after its remuneration report was voted down completely.
The company is now required to call a spill meeting within 90 days. Stockhead could not reach Globe for comment.
Following the news, the company’s shares climbed 11.7 per cent to 1.9c by the closing bell on Friday.
Also facing a board spill is Argent Minerals (ASX:ARD), which received a notice for the removal of its chairman and a director back in September.
Shareholder Oceanic Capital wants non-executive chairman Stephen Gemell and non-executive director Peter Nightingale booted off Argent’s board and replaced by Klaus Eckhof, Tim Hronsky and Emmanuel Correia.
Argent originally told shareholders to vote against all of the proposed resolutions at the December 6 meeting, but has decided now that Mr Eckhof might be a useful addition to its board.
Mr Eckhof is non-executive chairman of AVZ Minerals and is a geologist who has developed several projects globally.
Argent believes that “Mr Eckhof’s skills and track record warrant support of his appointment as a director”, Mr Gemell told shareholders last week.
AVZ shares are up six-fold in the past six months.
Argent is still urging shareholders to vote down the other resolutions relating to the removal of Mr Gemell and Mr Nightingale and the appointment of Mr Hronsky and Mr Correia.
Meanwhile, base metals explorer Inca Minerals (ASX:ICG) received a first strike at its AGM last week after 36.4 per cent of the votes were cast against its remuneration report.
ASX-listed companies receive a first strike when 25 per cent or more of the votes are cast against the remuneration report. If a company receives a second strike at the next AGM, shareholders can vote to spill the board.
Lithium minnow Novo Litio (ASX:NLI) also received its first strike last week, along with iron ore explorer Emergent Resources (ASX:EMG).
Directors shown the door
Tin explorer Avira Energy (ASX:AVW), formerly MGT Resources, saw one of its directors ousted at last Thursday’s meeting.
The majority of shareholders voted against the re-election of Rui Zhang. Christopher Chen and Dr Wen Shan Zhang subsequently tendered their resignations on Friday.
David Deloub was appointed as a non-executive director to replace Mr Zhang.
Shareholders of gold minnow Cervantes (ASX:CVS) showed no mercy for non-executive director Timothy Clark, who has been on an extended leave of absence for “personal reasons”.
Mr Clark lost his board seat after the majority of votes were cast against his re-election. Shareholders instead voted in Marcus Flis.
Viking Mines (ASX:VKA) executive director Peter McMickan, meanwhile, was voted out the company’s recent AGM and replaced by Charles Thomas, a nominee of shareholder GTT Global Opportunities.
In August, GTT called for the company to hold a meeting to consider the appointment of Mr Thomas and George Henderson as directors and removal of executive chairman John Gardener and Mr McMickan.
Mr Gardner stood down following the ousting of Mr McMickan.