The boardroom stoush at Troy Resources has concluded, with former chairman John Jones successful in removing three of the company’s directors, including founder Alan Naylor.
The junior gold producer announced yesterday evening that it had cancelled an extraordinary general meeting planned for 16 November.
Jones called for the meeting in late-September, seeking to replace Naylor, Denis Clarke and the company’s chief executive Paul Benson with Peter Stern, Robin Parish and Andrew Barclay.
According to a statement from Troy, Naylor has decided not to seek re-election to the board at the company’s next annual general meeting on 27 November.
He has been a director of the company since 1984.
Clarke, the chair of Troy’s audit committee and a 10-year director, has also decided to resign at the meeting.
Paul Benson will step down from the board but remain as chief executive.
He was unavailable for comment when contacted by MINING DAILY.
Robin Parish, a 5% beneficial shareholder in Troy, will be appointed to the board immediately, the company said.
With a 14% stake, Jones is the company’s largest shareholder and has remained a non-executive director after stepping down as chairman last year.
According to Troy, he has also confirmed he will support the re-election of the company’s standing chairman, John Dow, as a director at the meeting.
It was reported in September that the conflict was mainly fuelled by a disagreement over funding for the company’s $52 million Casposo gold-silver project in Argentina.
The board, with the exception of Jones, had considered a rights issue the best way to raise the money needed to develop the project.
Jones wanted a debt funding or a rights issue to existing shareholders, rather than a potentially dilutive rights issue at a discount.
“The successful resolution of these issues is a win for the future of Troy,” Dow said.
“All parties are committed to a strategy which delivers the best outcome for all shareholders.
“Having recently secured a fully underwritten entitlement issue to raise $24.9 million, the company can focus its efforts on developing Casposo.”
Jones echoed Dow’s views, saying it was a great outcome for the shareholders.