METOREX LTD MANAGEMENT FIRED BY SHAREHOLDERS

[mininginvestment]

Metorex and the curse of Ruashi :

 

 

Metorex’s exposure to the Democratic Republic of Congo (DRC) has been a high-risk/high-return strategy and so far it’s proved to be a very difficult environment for the South Africa-based company to operate.

 

Costs have ballooned at its $320m Ruashi copper and cobalt project and the time line has been pushed back by some six months.

 

The chairman , Mr. Simon Malone, and two executive directors at Metorex, as well as CEO Charles Needham, have been pushed out by irate shareholders after the company unveiled a R922m fundraising exercise that includes a highly dilutive rights issue that crippled the share price.

 

Two of the directors, Keith Spencer and Edward Legg will continue to act as advisors, and Needham will be bumped into a group managing director role once his replacement is found.

 

Of the R922m to be raised, R700m will go towards completing the Ruashi project in one of the more difficult – and uncertain -- operating environments in Africa.

 

Another important departure from Metorex’s board is George Forrest, one of the, if not the, most powerful businessmen in the DRC, who resigned as a non-executive director.

 

Mining and exploration permits owned by Metorex in the DRC are under review.