Mustang crowns new boss, tasks him with getting market cap to $50m
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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.
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.