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:angry: 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.


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