Mindax shares plunged on the ASX today after the company appointed a new non-executive director ahead of a shareholder vote regarding the future of the company’s $115 million tie-up with Japan’s Sumitomo.
Mindax announced today that Lion Asiapac executive director Eric Loh had joined its board with immediate effect.
Chairman Gilbert George said the company believed an expansion of its board would be in the interests of shareholders as it progresses towards the development of the Mt Forrest iron ore project.
“it is anticipated Mr Loh’s corporate background, business experience and qualifications will make a strong and independent addition to the expertise of the board,” Mr George said in a statement.
By close of trade today Mindax stocks had slipped 17 per cent, trading at 12 cents.
Mr Loh joins the board just days after major shareholder and non-executive director Andrew Tsang lodged paperwork to oust managing director Greg Bomley and director Ken Pettit, in order to block the $115 million Sumitomo deal.
Mindax announced earlier this month that Sumitomo had bought into Mt Forrest after searching for a joint venture partner for the project for the past nine months.
Under the deal, Sumitomo would pick up a 45 per cent stake in Mt Forrest by funding a $15 million feasibility study, while holding the option to pick up a further 25 per cent interest by spending up to $100 million on the project’s development.
Shareholders are due to vote on the transaction at a yet to be scheduled meeting, prior to May 18.
