- A major shareholder is calling for an executive shakeup at Midas Gold (MAX), ahead of plans to redomicile the company in the U.S.
- Investment managers Paulson & Co, which hold a 44.1 per cent stake in the TSX-listed miner, have called for a special meeting of shareholders to address and potentially modify the company’s Board of Directors
- Paulson & Co are pushing for a more U.S.-centred team of directors, which would match its plans to re-headquarter the company south of the border and transition into the critical metals sector
- Currently, the major investor is calling for five directors to be removed and replaced with Idaho-based directors
- An official response from the company has not yet been released
- Midas Gold is up 7.96 per cent and is trading for C$1.22 per share
A major shareholder is calling for a board shakeup at Midas Gold (MAX), ahead of plans to redomicile the company in the U.S.
Investment managers Paulson & Co, which hold a 44.1 per cent stake in the TSX-listed miner, have called for a special meeting of shareholders to address and potentially modify the company’s Board of Directors.
Paulson & Co are pushing for a more U.S.-centred team of directors, which would match its plans to re-headquarter the company south of the border and transition into the critical metals sector.
Subsequently, the major investor is calling for five current directors to be removed and replaced with U.S. and Idaho-based directors to demonstrate the company’s long-term commitment to its Stibnite Gold Project, also located Idaho.
Marcelo Kim, Partner at Paulson, commented on the need for a director shakeup ahead of the U.S. move.
“If elected, the new Board will have more U.S.-based directors, specifically Idaho-based directors, and greater diversity of thought and experience, better equipping the board to help the company achieve its long-term goals,” he said.
Marcelo went on to say that, in “stark contrast to current directors”, the new board expects to hold substantial amounts of stock in the company, which would create an “economic alignment with Midas Gold’s shareholders.”
The current directors on the chopping block were not quoted in Paulson and Co.’s letter to shareholders, and an official response from the company has yet to be released.
Paulson & Co have requested the shareholder meeting be held no later than January 18, 2021.
Midas Gold is up 7.96 per cent and is trading for C$1.22 per share at 11:46 am EST.
