- Write by:
-
Wednesday, October 17, 2018 - 4:11:59 PM
-
962 Visit
-
Print
Mining News Pro - hedge fund Livermore Partners has called for an overhaul of the board at Detour Gold Corp and a strategic review, becoming the second activist to target the Canadian mining company.
According to Mining News Pro -TORONTO, Oct 16 (Reuters) - U.S. hedge fund Livermore Partners has called for an overhaul of the board at Detour Gold Corp and a strategic review, becoming the second activist to target the Canadian mining company.
Livermore sent a letter dated Oct. 16 to Detour in which Livermore Managing Director David Neuhauser said the board had failed its shareholders on "numerous governance and operational matters." The letter was seen by Reuters.
Livermore has engaged in other activist campaigns including at Canadian and UK media company Entertainment One Ltd .
Livermore declined to reveal the size of its stake in Detour due to the fund`s policy not to disclose stakes unless it has to file with regulators.
The letter followed U.S. hedge fund Paulson & Co asking for Detour`s entire board to be replaced and demanding that the company run a formal process to evaluate alternatives. "We think there needs to be wholesale change at the board level," Neuhauser said in an interview. "I have zero conviction that the current management team and board can execute," he said.
“Detour Gold always welcomes constructive input from shareholders," Detour spokesman Ian Robertson said. "Shareholders we have spoken to say Detour Gold is on the right track with a refreshed board that has significantly bolstered its expertise and is focused on ensuring the life of mine plan succeeds in maximizing the value of our unique asset.”
Investment company Coast Capital Management L.P., another Detour shareholder, has asked for a sale of the company and called for board changes.
Livermore`s Neuhauser said he was not acting in concert with Paulson but had formed his opinion based on publicly available information. Both Livermore and Paulson are part of a recently created alliance of gold mining investors called the Shareholders Gold Council. While Neuhauser supports Paulson`s demands, he said he would be satisfied if most of the board was overhauled. He said Detour needed to a hire a global investment bank to evaluate all strategic options, including a sale or a joint venture with a partner such as a Chinese miner.
Detour was willing to settle with Paulson last week, offering to name a new chief executive officer and drop a civil claim. Paulson rejected the offer. Paulson has said its alternative proposals have been rejected by Detour.
Neuhauser said Detour`s proposed changes were not enough to win the trust of shareholders.
Short Link:
https://www.miningnews.ir/En/News/282419
A Russian arbitration court ruled on Monday that four units of Swiss commodities trader Glencore will pay more than 11.4 ...
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Chile’s state-run miner Codelco plans to select a partner for a future lithium project in one of the country’s top salt ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Codelco is exploring more partnerships with the private sector as Chile’s state copper behemoth looks to recover from a ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
China’s state planner on Friday finalized a rule to set up a domestic coal production reserve system by 2027, aimed at ...
No comments have been posted yet ...