Johannesburg, South Africa — MININGREVIEW.COM — 18 December 2009 – Shares in emerging new generation platinum miner Wesizwe Platinum Limited have risen the most in six weeks after the exploration company revealed that its shareholders had voted to reinstate former CEO Michael Solomon and director Robert Rainey.
The shares “’ which were unchanged until the results of the shareholder meeting were announced “’ climbed 15 cents, or 7.5%, to R2.15 rand here.
“There were groups on the board that were at each others’ throats,” said Iraj Abedian, who was removed as Wesizwe’s chairman yesterday at a three-hour meeting in Johannesburg, during which some shareholders and some of Wesizwe’s directors shouted at each other. “I’ve never seen such disregard for corporate governance at a basic level,” he added.
The company, which listed four years ago, reviewed its strategy and funding this year after the global financial crisis stopped it from digging its first platinum mine. Attempts by Wesizwe “’ which has a market value of R1.26 billion rand “’ to raise money, some of it in collaboration with the state-owned Industrial Development Corporation, were thwarted by disputes among board members that led to the removal of Solomon and Rainey early last month.
“Some of the accusations made between board members included racism and the unequal treatment of directors, financial mismanagement, and the leaking of confidential documents,” Abedian said.
All 11 resolutions were passed at yesterday’s special general meeting. As well as the re-instatement of Solomon and Rainey, and Abedian’s removal, directors Nyasha Tengawarima and Disele Phologane were voted off the board, while Dawn Mokhobo, Mike Eksteen, Peter Gaylard and Kgomotso Moroka were appointed to the board.