LONDON (Alliance News) - Nyota Minerals Ltd saw its shares fall sharply Tuesday after its shareholders voted against its remuneration plan and against its request to approve an additional 10% share placing facility.
The gold explorer had said Monday that shareholders had passed a resolution to approve the issue of new shares of up to 10% of the issued share capital of the company, but Tuesday issued a correction saying the resolution hadn't in fact been passed on a show of hands.
That came on top of the rejection of the remuneration report.
The company had wanted the extra share placing facility in case it needed extra funds to advance its Tulu Kapi project, its suite of Ethiopian exploration assets, acquire new resource assets or investments, or for general working capital.
Nyota said it will need to raise funds in the first-half of 2014 in order to pay for ongoing costs at Tulu Kapi and to continue its exploration programme. It said it may decide not to fund its pro-rata share of Tulu Kapi, but will suffer dilution of its shareholding as a result.
It sold a 75% interest in the Tulu Kapi gold site to KEFI Minerals PLC in December after the sharp fall in the gold price last year had left it struggling to find a joint venture partner for the site.
The remuneration report set out a range of matters relating to the remuneration of the company's key management personnel for the year ending June 30, 2013, including a USD381,320 payment to Chief Executive Richard Chase, including through shares and options, and a USD254,673 payment to Former Technical Director Martyn Churchouse, including shares and options.
Nyota said that steps have already been taken in the current year to address remuneration concerns, including reducing the board to three persons and agreeing in January to a material reduction in salary for the CEO and fees for other directors.
Nyota shares were down 17.7% at 0.35 pence Tuesday morning, the biggest decline on the AIM market.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
