Mustang director heads for the door two months after boss quits

Mustang Resources is losing one of its directors less than two months after its managing director stepped down.

Peter Spiers has vacated his role as non-executive director, Mustang (ASX:MUS) told investors today.

In mid-November, Christiaan Jordaan quit his managing director position for “personal reasons”, but remained on with the company as a non-executive director.

Mr Spiers intends to “pursue other business interests within the resources sector, including a new public company executive role”, Mustang said.

Mustang was plagued with problems in 2017 — from the shooting of one of its security guards in Mozambique to a disappointing maiden ruby auction in Mauritius.

Since mid-October, the company’s share price has plummeted 85 per cent from a 52-week high of 20c to just 3c.

MUS shares plunged on the back of its failed maiden ruby auction in Mauritius. Source: Google Finance

Mustang blamed its gem-grading system for the failure of its October ruby auction.

Sold carats represented only 7 per cent of the total 405,000 carats Mustang had on offer at the auction, netting a disappointing $713,456.

Mr Spiers’ exit means Mustang will be left with just three directors, which still meets the regulatory requirements of an ASX-listed company. But Mustang noted it is “very well advanced” in the appointment of a replacement managing director.

The company expects to make an announcement on the new appointment within the next two to three weeks.

Once the new managing director is in place and Ian Daymond reverts to his non-executive chairman role, the new board will give consideration to the appointment of an additional non-executive director, Mustang said.