Shares in cashed-up Moly Mines have slumped after the company's two most senior executives left the business and it admitted it was likely to suspend trading on the ASX after failing to acquire a new business.
Shares in cashed-up Moly Mines have slumped after the company's two most senior executives left the business and it admitted it was likely to suspend trading on the ASX after failing to acquire a new business.
Moly last year signed a mine gate sale agreement with Mineral Resources worth about $38 million for output from its Spinifex Ridge iron ore mine in the Pilbara.
Moly said at the time that it would look for merger and acquisition opportunities, particularly in relation to copper and gold assets.
However the company said today that it was yet to find an opportunity which it considered in its best interests, despite conducting due diligence enquiries and negotiations with various third parties.
The Australian Securities Exchange allows companies that have disposed of their main business a six-month period in which they can satsify the market that they have sufficient level of operations to justify continued quotation on the ASX.
With Moly's April 22 deadline looming, the company said it was of the view that is was unlikely to implement an acquisition strategy within the six-month timeframe.
This means the company is likely to have its shares suspended from trade, while remaining a listed entity, until it recommences an adequate level of operations.
Moly chairman Nelson Chen said the board had rejected several potential acquisitions as not being in the company's best interests given the assets and terms available.
He said the suspension from trade would be temporary and the company continued to assess potential acquisitions.
"Cash is king and patience a virtue," he said.
"We are very well positioned in the market to go for quality projects in accordance with our strategy.
"Every effort will be made to ensure we secure key assets best suited to the future growth profile of the company."
Moly meanwhile announced a string of executive changes, which it said would establish a management structure more suitable to the company's current position.
It has appointed Graeme Kininmonth as its new acting chief executive, replacing former acting CEO David Pass.
Mr Kininmonth currently serves as Moly's health and safety and environment manager, and has previously held senior positions with Straits Resources, Sons of Gwalia and Alcoa of Australia.
He will receive a base salary of $350,000, with a 10 per cent superannuation guarantee equating to a further $33,350 per annum.
Riccardo Vittino will meanwhile assume the acting chief financial officer role, replacing previous acting CFO Alan Howells.
Mr Vittino was previously chief financial officer of Queensland Mining Corporation.
Moly's independent directors have stepped down from the company's board in recent months, ceding control to representatives of Moly's major shareholder Hanlong Mining.
The company's shares closed the day's trade more than 25 per cent lower at 7 cents.
