Former Kin Mining director fights to take back control of the gold miner
Mining & Resources
Troubled gold miner Kin Mining is facing another attempt to get rid of directors — this time from a director that stepped down earlier this year after shareholders called for his removal.
Kin (ASX:KIN) has received a “249D notice” calling for the removal of all of the five current directors and the appointment of David Sproule, Christopher Johnston and John Kamara as replacements.
Mr Sproule stepped down earlier this year after former chairman Terrence Grammer, along with former non-executive director Marvyn Fitton and Orbit Drilling, called for him to be ousted.
The push to have Mr Sproule evicted led to Don Harper quitting as managing director.
Mr Harper told Stockhead shortly after he tendered his resignation that he quit because he lost the support of the board while attempting to keep Mr Sproule from being booted out.
He said at the time that Mr Sproule’s removal would not be good for shareholders because he had gotten Kin to the point of having $40 million in the bank, being fully permitted and ready to start building the processing plant at its Leonora gold project in Western Australia.
But not long after the pair exited, Kin revealed that it was dialling back the construction works at Leonora after a review found the company would need to spend more cash than the $35.4 million outlined in the October 2017 definitive feasibility study.
Mr Kamara was the company’s financial advisor and he helped put in place the funding facility for the Leonora project.
The company’s share price has slumped over 78 per cent in the past 12 months to trade at 7.6c
New managing director Andrew Munckton told Stockhead in August that Kin was in “reset mode”.
The company said it had identified “several opportunities” to improve returns and reduce risk.