Unhappy shareholders have delivered PanTerra a first strike over director pay

Strike One! PanTerra has received its first strike over directors' salaries.

PanTerra Gold shareholders are not happy about how much the troubled junior producer is paying its directors.

The company (ASX:PGI) received its first strike at Thursday’s annual general meeting after more than 25 per cent of the votes were cast against its remuneration report.

Under the ‘two-strikes’ law if PanTerra receives a no vote of 25 per cent or more against its remuneration report at next year’s AGM shareholders can then vote to call a meeting to potentially spill the board.

PanTerra is facing issues in the Dominican Republic, which has seen its share price tumble 60 per cent in the past year to 2.8c.

The company revealed yesterday that its subsidiary EnviroGold (Las Lagunas) is seeking $US25 million worth of damages from the Dominican Republic over its alleged failure to provide a suitable dam site for the storage of reprocessed tailings from the Las Lagunas operation.

PanTerra said in December last year it was selling the gold processing plant because it could not get the local government on side.

PanTerra Gold (ASX:PGI) shares over the past year.

The company says the government has not responded to the potential claim and that EnviroGold is now submitting a formal notification of dispute to the Minister for Energy and Mines.

If the dispute isn’t settled by negotiation it will proceed to arbitration in Washington DC.

Stockhead is seeking comment from PanTerra.