Guyana Goldfields Inc. [GUY-TSX; GUYFF-OTC] said Monday April 29 that it has reached a settlement with a group requisitioning shareholders that includes the company’s former CEO Patrick Sheridan.
The company also said it will implement a succession plan for the CEO position within the next six months. Meanwhile, Scott Caldwell will continue as CEO while the search for a successor is underway.
Under the terms of the settlement, the company has agreed to appoint Alan Pangbourne and Allen Palmiere to its board of directors as replacements for Jean-Pierre Chauvin, Michael Richings, and David Beatty, who are stepping down.
Pangbourne has more than 35 years of experience in the mining industry, including open pit and underground operations. Prior to his retirement last year, he was chief operating officer at SSR Mining Inc. [SSRM-TSX, NASDAQ]. Prior to joining SSR Mining in 2013, he was vice-president, projects, South America, with Kinross Gold Corp. [K-TSX; KGC-NYSE].
Palmiere has over 35 years of operational and financial experience in the mining industry. During his career, he served as President and CEO of Adriana Resources Inc., CEO and Chair of HudBay Minerals Inc. [HBM-TSX, NYSE], and Executive Chair of South Africa’s Barplats Investment Ltd.
Guyana Goldfields is a Canadian mid-tier gold producer, primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana and northern Brazil.
Its primary operation is the 100%-owned Aurora Gold Mine, which reached the commercial production stage in January 2016.
The company said the requisitioning shareholders have agreed to customary standstill provisions extending through the company’s 2021 annual general meeting. Guyana has also agreed to reimburse the requisitioning shareholders for reasonable expenses incurred by them during the proxy contest. The company has separately also agreed with Sheridan to resolve certain outstanding claims.
On Monday, Guyana Goldfields shares rose 5.32% or $0.05 to 99 cents. The shares are trading in a 52-week range of 88 cents and $5.41.
The share price took a steep drop from $3.30 in October 2018, after the company reduced its production targets to 150,000-155,000 ounces from an earlier target of 175,000-185,000 ounces, which was also below guidance set in January 2018 of 190,000-210,000 ounces.
The company recently said it is on track to produce between 145,000 and 160,000 ounces this year after producing 36,600 ounces in the first quarter of 2019.
As of March 31, 2019, the company said it had US$73 million in cash and total debt of US$35 million.
The company is expected to release its first quarter financial results after markets close on Tuesday, April 30, 2019.