Ruby miner Mustang Resources has filled its vacant managing director role and asked the new head to more than double its market value.   

Mustang (ASX:MUS) has named Dr Bernard Olivier as the new head of the company after Christiaan Jordaan quit his managing director position for “personal reasons” in mid-November.

Jordaan’s exit came close on the heels of the company’s failed maiden ruby auction, which netted Mustang a disappointing $713,456 from the sale of just 7 per cent off the total 405,000 carats on offer.

Investors welcomed the news of the appointment, with shares gaining 6.5 per cent to reach an intra-day high of 3.3c. But the company’s share price is still down over 80 per cent on the 52-week high of 20c Mustang was trading at prior to the October auction.

MUS share price movements over the past six months.
MUS share price movements over the past six months.

Mustang is offering Dr Olivier an incentive to increase the company’s market value to $50 million: a $30,000 increase to his starting annual salary of $220,000 if the market cap reaches that value and stays there for at least 20 consecutive trading days. The company has a current market cap of $23 million.

Dr Olivier, who will take up the full-time role with Mustang from the end of March, has worked as a geologist since 1998 in various African, Asian and South American countries.

“Bernard brings significant experience in all aspects of coloured gemstone mining, marketing and sales, and was a key person in the development of the TanzaniteOne coloured gemstone mining operation in Tanzania where he managed a team of over 600 employees,” chairman Ian Daymond noted.  

Dr Olivier also has a background in the graphite sector and eight years of experience as CEO of a London Stock Exchange-listed company.

Most recently, Dr Olivier has served as the CEO of sapphire miner Richland Resources Plc (formerly Tanzanite One) since March 2010 and as a director of gold and platinum player Bezant Resources Plc since March 2007.

Meanwhile, non-executive director Cobus Van Wyk will shift into the roles of chief operating officer and executive director. Mustang lost one of its non-executive directors just two months after Mr Jordaan gave up the managing director gig.