15th Jul 2020 11:06
(Alliance News) - Russian gold miner Petropavlovsk PLC on Wednesday said shareholder Everest Alliance Ltd has now demanded an "independent forensic investigation" into the company's dealings with its directors and managers over the past three years.
Everest Alliance, which has a 5% stake in the firm, has requisitioned Petropavlovsk to probe all transactions undertaken by the company, its subsidiaries, any former or current director or senior manager and any of their affiliates.
The investor also has demanded the company probe any dealings with IRC Ltd, which is 31% owned by Petropavlovsk and operates the Kimkano-Sutarsky mine.
"For the purpose of carrying out such independent forensic investigation the board shall retain one of the following firms: Deloitte, EY, KPMG, or PwC. The purpose of the forensic investigation is to determine if each such transaction or arrangement was carried out in the best interests of the company and to the benefit of its shareholders or otherwise," the company said citing Everest's demand.
Everest earlier in July had requested a general meeting of the company to propose hiring of Paul Bushell and Ivan Kulakov as directors of Petropavlovsk.
The investor also sought a court order to remove Non-Executive Chair Peter Hambro, Chief Executive Alya Samokhvalova, Non-Executive Directors Johnny Smith and Angelica Phillips.
Petropavlovsk on Wednesday said a court order confirms that Hambro, Samokhvalova, Smith and Phillips will remain as directors. The order permits the board, subject to at least 5 days' notice to Everest, to appoint new directors, enter or amend certain contracts or issue new shares.
"It is the board's intention that, having received requisitions from both Prosperity Capital Management and Everest, a GM is called without delay, affording all shareholders the opportunity to cast their respective votes in full knowledge of the relevant facts. A notice convening the GM will be sent to shareholders in due course," Petropavlovsk said.
Shares the company are up 1.0% at 29.33 pence each in London on Wednesday morning.
By Tapan Panchal; [email protected]
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