Former Troy Resources chairman John Jones is aiming to retake control of the company, launching a bid on Friday to replace three board members, including chief executive Paul Benson.
With a 14% stake, Jones is the company’s largest shareholder and has remained as a non-executive director after stepping down as chairman last year.
He issued Troy with notice calling for a shareholder meeting to replace current board members Benson, Alan Naylor and Denis Clarke with Peter Stern, Robin Parish and Andrew Barclay.
Naylor has been a director of the company since 1984, while Clarke is the current chair of Troy’s audit committee.
If successful, Jones and his associates would control the majority of seats on the board.
Troy Resources was unavailable for comment when contacted by MINING DAILY this morning.
The Australian reported that Jones is aiming to stop the company from undertaking what he sees as heavily-dilutive capital raising.
Long-running disagreements with Paul Benson are also believed to have contributed to the dispute.
According to current chairman, John Dow, the conflict has been mainly fuelled by a disagreement over funding for the company’s $52m Casposo project in Argentina.
He said the board, with the exception of Jones, considers a rights issue the best way to raise the money needed to develop the project.
Jones is understood to be more in favour of debt funding or a rights issue to existing shareholders, rather than a potentially dilutive rights issue at a discount.
“It is disappointing that John has decided to take such aggressive action against the board at such an exciting time in Troy’s history,” Dow said.
Jones told The Australian he believed he had the support of up to 40% of Troy shareholders.