GTT wins the Battle for Baraka as investors break up with the old board
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The old guys are out and the new in at Baraka Energy & Resources, after an attack by one-time fundraiser GTT Ventures succeeded in sending the board packing.
GTT Ventures had called an extraordinary meeting to try to dump Colin and Justin Vost and Ray Chang on Friday — and suceeded.
The outgoing board promised a “co-operative transition of the existing board to three new members”.
The new board is Jason Brewer, Patrick Glovac and Chris Zielinski.
Mr Zielinski works with Nova Legal, while Mr Brewer is a fan of the Democratic Republic of Congo (DRC) — he introduced Winmar Resources (ASX:WFE) to the area — and Mr Glovac is one of the chiefs at GTT.
In a statement on Friday, Baraka said successful mining investments for the latter pair included AVZ (ASX:AVZ), which is looking for lithium in the DRC, Lepidico Ltd (ASX:LPD), Force Commodities (ASX:4CE), Winmar, Cape Lambert (ASX:CFE), Vector Resources Limited (ASX:VEC), and TAO Commodities (ASX:TAO).
Shareholders in each of these companies may disagree — shares in five of these companies are over 50 per cent lower than they were at the start of the year.
In Tao’s case, it’s 12.5 per cent lower that when it listed in April.
Winmar on the other hand is up 380 per cent since the start of January.
Baraka is up 700 per cent:
GTT Ventures led the charge against the old board by accusing the Vosts in particular of paying themselves too much and tying the company up in non-performing loans to other businesses whose boards they sit on the boards on.
Colin Vost told Stockhead last week that he didn’t want to defend the claims point by point and the matter was better resolved through private discussions rather than publicly.
GTT counts among its clients Robo 3D (ASX:RBO) and Painchek (ASX:PCK), but also backed the now defunct AppLabs and XTV, which is in administration after two years in stasis.