Finders board rejects attempted ?takeover? of Wetar copper project by Taurus Funds
Thursday, August 15 2013 - 02:34 AM WIB
ASX-listed Finders Resources Ltd issued a statement appealing to shareholders to oppose a proposal by Taurus Funds Management to remove the company?s independent directors as it would lead to an undervalued takeover of the valuable Wetar copper project on Wetar Island, in Indonesia?s Maluku province.
?The proposed removal of all independent directors, together with one executive director from the Board would, in Finders? opinion, make Finders Resources highly vulnerable to an opportunistic and undervalued takeover,? the company said in a statement obtained Thursday.
Finders said it received last week from major shareholder Taurus Funds Management a Section 249D Notice calling for an Extraordinary General Meeting to consider removing three of seven directors of Finders, and the appointment of Gordon Gait, representing major shareholder Taurus Funds, to the board.
?The majority board ? strongly advises all shareholders to reject the proposal to remove all the independent directors as being against the best interests of Finders and all shareholders,? the company said.
In the last four weeks, Finders has received the final Forestry permit approvals which will allow full development of the high grade Wetar Copper project, announced a new development plan which will significantly reduce capital costs and shorten lead time to production.
On August 6 Finders announced a successful capital raising of approximately A$14 million, including $10m from the exercise of outstanding options by Provident Capital.
This capital raising leaves Finders in a strong financial position to advance the Wetar project, and the Board has approved recommencement of the Wetar demonstration plant, upgraded to a capacity of 3,000t Cu cathode/year, as outlined in ASX release of July 26. Initial cathode production is scheduled for late Q4 2013.
Editing by Reiner Simanjuntak