Join our daily newsletter At The Bell to receive exclusive market insights
- The CZR Resources (CZR) board has lost four directors after failing to reach a consensus on how to develop and commercialise their flagship iron ore project
- Non-executive chairman David Flanagan, Non-executive directors Anna Neuling and Simon Jackson and Managing Director Robert Ramsay are set to resign on September 10
- It follows what is understood to be a disagreement surrounding how to spend proceeds from a recent capital raise
- The company says the exodus is in shareholder’s best interests and a way to resolve the matter
- CZR Resources shares are down 11.1 per cent to trade at 0.8 cents
The CZR Resources (CZR) board has lost four directors after failing to reach a consensus on how to develop and commercialise their flagship iron ore project.
CZR said it was in the “best interest of all shareholders” that Non-executive chairman David Flanagan, Non-executive directors Anna Neuling and Simon Jackson and Managing Director Robert Ramsay are set to resign on September 10.
The exodus comes months after the company tapped sophisticated investors for $7 million via a placement and share purchase plan in June, with CZR’s major shareholder taking up a 42.9 per cent stake.
It is understood the funds were set to fuel a definitive feasibility study for the Robe Mesa Iron Ore project and ensure CZR had money in the bank to support other projects.
Robe Mesa Iron Ore Project is owned via a joint venture between CZR, which owns 85 per cent, and Zanf Pty Ltd which owns the remaining 15 per cent.
CZR said the company had been unable to reach a consensus regarding development pathways and commercial business operations for the project and said the board changes were a way to resolve the matter.
CZR affirms Managing Director Robert Ramsay will remain available to the company to “facilitate the transfer of any technical knowledge relating to the projects”.
Ms Annie Guo will remain on as the only director and will move “immediately to appoint suitable replacement directors in order to maintain continuity in developing and enhancing the company’s future”.
CZR Resources shares were down 11.1 per cent at 11:44 am AEST to trade at 0.8 cents.
