(Alliance News) - Aura Energy Ltd on Thursday said it has written to the Australian Securities & Investments Commission in a bid to delay a shareholder meeting requisitioned by Pre-Emptive Trading Pty Ltd to put forward a resolution to appoint its nominee John Bennett, as a director.
The meeting is scheduled for January 6. Pre-Emptive Trading has a 5.89% stake in Aura.
The Australia-based uranium explorer repeated its view that Bennett should not be appointed as a non-executive director as it believes Pre-Emptive Trading is in breach of contact for failing to take up shares it agreed to subscribe for in the company’s placement that completed back in February.
As a result, Aura Energy is bringing action against Pre-Emptive Trading for the recovery of USD456,000 in damages.
Aura Energy also said it does not believe Bennett has the experience necessary to act as a director of the company nor the appropriate skills in governance, debt & equity markets and reporting.
Executive Chair Peter Reeve said: "The board has continued to act and deliberate on this difficult issue in good faith and in the best interests of the company. It continues to see the proper resolution of this matter, in the interests of all shareholders, as extremely important to its future as a producer and developer of mineral projects."
The Aura Energy board previously recommended shareholders vote against Bennett's appointment.
Shares in Aura Energy were trading 5.4% higher at 0.29 pence per share on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Aura Egy (AURA)