Metals Exploration, a gold mining company focused on the Philippines, announced on Monday that its Independent Chairman, David Cather, has resigned with immediate effect. The resignation comes at the insistence of the company's second largest shareholder, Runruno Holdings.
Runruno Holdings requested Cather's departure due to certain provisions outlined in an agreement between Runruno Holdings and MTL (Luxembourg), the company's largest shareholder. These provisions, established during the company's debt restructuring, limited the independence of Metals Exploration's board of directors.
MTL currently holds a 46.3% stake in the company, while Runruno Holdings owns 18.8%, according to FactSet data.
Metals Exploration expressed that Cather's resignation goes against the majority of the board's wishes and is also contrary to the stance of MTL.
Despite stepping down as Chairman, Cather will continue to serve as a director of Metals Exploration Pte. and will remain a mining engineering consultant to FCF Minerals, a subsidiary of Metals Exploration.
To fill the void left by Cather's resignation, the company has appointed Steven Smith as interim chairman.
At 0812 GMT, the company's shares were down 2.4% at 2.0 pence.