4th Mar 2015 09:09
LONDON (Alliance News) - Bacanora Minerals Ltd Wednesday said its board had unanimously approved the appointment of Rare Earth Minerals PLC Executive Chairman David Lenigas as a non-executive director, meaning Rare Earth agreed to withdraw a request for a shareholder meeting to vote on the move.
Rare Earth has a stake of just over 15% in Bacanora as well as a 30% interest in two Bacanora subsidiaries that hold the rights to various concessions including the Sonora Lithium project in Mexico. However, Bacanora had already appointed Kiran Morzaria as Rare Earth's representative on the Bacanora board in September last year.
When Rare Earth last month requisitioned a special meeting of Bacanora shareholders to consider a resolution to add Lenigas to the board, Bacanora's board pledged to review the requisition in detail. It said it had now unanimously approved the appointment of Lenigas as a non-executive director.
Lenigas, aged 53, is a heavyweight in the UK-listed junior mining and resources sector. As well as being chairman of Rare Earth Minerals, he is executive chairman of AfriAg PLC, UK Oil & Gas Investments PLC and Evocutis PLC, the non-executive chairman of Inspirit Energy Holdings PLC and a non-executive director of Octagonal PLC.
"We are very pleased to have David join our board and we look forward to working together with him. His extensive global corporate and mining experience is expected to assist in advancing the Company through this exciting time in its growth and development," Bacanora Non-Executive Chairman Colin Orr-Ewing said in a statement.
"REM believes that Bacanora will benefit from having the additional REM support on their board as Bacanora endeavours to maximise the potential of the highly prospective Sonora Lithium Project in northern Mexico as Sonora enters in to one of the most important and exciting phases of its development," Lenigas said in a separate statement.
Still, Bacanora shares were down 6.3% at 70.75 pence in London early Wednesday, retracing some of the gains made on Tuesday, while Rare Earth Minerals shares were up 0.6% at 0.905 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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Related Shares:
BCN.LRare Earth Metals