14th Mar 2016 10:04
(Correcting that Nyota plans to hold an extraordinary general meeting once the details of the proposed directors have been received despite shareholders submitting invalid requests.)
LONDON (Alliance News) - Nyota Minerals Ltd on Friday said it will hold the extraordinary general meeting that some of its shareholders have called for once its second-largest shareholder provides details about the directors it proposes appointing to the board.
As of Friday, shareholders holding a total 19.1% stake in the company have filed a request to the company asking for an EGM to be held to seek the removal of Chief Executive Richard Chase and Executive Director Michael Langoulant.
Numerous shareholders have sent letters requesting the meeting, including its two largest shareholders, Fiske Nominees with a 6.3% stake and Andrew Neal with a 6.4% stake.
Further shareholders holding a combined 9% stake also have sent letters stating they intend to support the EGM and its proposals, meaning shareholders with a total stake of 28.1% are now calling for action.
However, Nyota said none of those letters are valid requests for an EGM, but it agreed to hold a meeting once Fiske, as the shareholder who is proposing to appoint new directors to the board, provides details of the background, experience, consents to act, and contact details of the proposed directors to ensure they meet regulations.
"The company will then as soon as practicable thereafter convene a general meeting of shareholders whereby all shareholders will be able to vote on the composition of the board," the company said.
"The board also invites shareholders to contact them to discuss potential candidates with a view to nominating suitable directors to be considered at a general meeting of shareholders," it added.
Importantly, Nyota has already agreed to move CEO Chase from his role, making him a non-executive director, it said.
Nyota said it has attempted to discuss the ongoing matters with concerned shareholders, but said no agreement has been reached despite offering to make a "progressive change" to the board.
Nyota has agreed to hold the meeting despite saying the requests were invalid, after recognising the ongoing "activism" is harming the company and preventing it from making investments.
"The board is conscious that in a situation whereby minority shareholders are seeking board control, the interests of all shareholders need to be protected and all legal requirements properly satisfied," said the company.
"Further, the board notes that current shareholder activism is having an adverse impact on the board's ability to progress any meaningful discussions on new potential investment opportunities; as illustrated by the termination this week of detailed discussions with a third party in relation to a potential new business opportunity," it added.
Nyota shares were trading down 3.5% to 0.0820 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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