LONDON (Alliance News) - Nyota Minerals PLC Wednesday said it is going to reiterate support for its Chief Executive Richard Chase at its extraordinary general meeting next month.
The EGM will be attended by Nyota's largest shareholder Centamin PLC, which has called for the removal of Chase.
"It would not be of use to have him leave the board at this point," a spokesman from Nyota Minerals told Alliance News Wednesday. "Shareholders are exploring all other options."
The company announced that the general meeting to discuss Centamin's proposal will take place November 15.
Nyota, a gold exploration company with one large license area in Western Ethiopia, said Centamin is attempting to oust Chase ahead of a development decision on its Tulu Kapi site. Centamin and Nyota have been working together on potential ways to progress Tulu Kapi, including a possible joint venture. The discussions have stalled, and Nyota has begun looking at other options.
Centamin's call for the removal of Chase is an attempt to salvage a deal.
"As almost 20% shareholders, we are very concerned by how the company has been managed," Centamin spokeswoman Cornelia Browne told Alliance News on September 20. "In order to move strategy on, it needs to make a change, so Centamin asked for the removal."
Nyota Minerals has been attempting to find funding partners to continue development of its Tulu Kapi gold mine in Western Ethiopia and said talks are at an advanced stage.
The company had said it would run out of cash by the end of September, but in a recent statement said cost cutting and careful management of its spending means it has enough to get it through to the end of October at least. Its cost-cutting has included reducing by half fees paid to its directors.
On October 3, Nyota was temporarily suspended from trading on AIM at its own request, pending an announcement on funding discussions.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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