MINING: Mwana gives in . . . calls extraordinary general meeting (EGM)

MWANAMWANA AFRICA has acceded to the demands of some shareholders led by Mr Ian Dearing to hold an where a new make-up of the board of directors is expected to be determined.

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The EGM will be held in London on July 9.

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Since March this year, Mwana Africa has been under incessant pressure from a section of shareholders who want to shake up the board.

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Interestingly, Mr Dearing is not part of the directors, raising suspicion that he is a proxy of some influential shareholders.

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Sources say China International Mining Group Corporation (CIMGC) and Mr Yat Hoi Ning, a non-executive director and associate of CIMGC – Mwana’s biggest shareholders – are behind the push for the EGM.

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CIMGC holds 21,4 percent while Mr Ning has 7,6 percent shareholding, making a combined 29 percent stake in the multi commodity miner.

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It is believed that the shareholders want one of them to become chairman.

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“Following the request from (Mr) Ian Dearing and a small group of private shareholders to convene an EGM of the company’s shareholders seeking to approve a number of new non-executive directors and changes to the board of directors of the company, the company will today (yesterday) issue a circular which contains full details of why the board (excluding Mr Ning and Mr Hu who, on account of the ongoing petition, have chosen not to participate in the directors’ recommendation) strongly believes that the resolutions are not in the best interests of the company and shareholders and why the board recommends that shareholders vote against all the requisitioners’ proposed resolutions,” said Mwana in a statement on May 12.

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Some of the company’s top officials – Mr Stuart Morris (interim non-executive chairman) and Mr Johan Botha (non-executive director) – have indicated their intention to retire from the board of directors at or before the EGM.