Officials at Quantum Pacific Investment, which represent a group owning 5% of Australia’s Intrepid Mines, are pushing for major changes in the board of directors after the gold explorer lost a main Indonesia project.
“The significant decline in our company’s share price has made it self-evident that a new corporate path is required,” Hong Kong-based Quantum Pacific said in a statement; the group seeks to remove five of seven Intrepid board members and appoint four new directors.
Intrepid entered into an agreement with Indonesia’s PT Indo Multi Niaga in 2008 for an 80% stake in East Java’s Tujuh Bukit deposit, with probable reserves of 25 million oz of gold and 15 billion lb of copper. The group’s private equity investor represents Intrepid’s No. 3 shareholder.
But in 2012, Indo Multi re-sold the business to a company that has since transferred the mining license to a separate entity, consequently nullifying its accord with Intrepid, which developed the asset for $100 million; Tujuh Bukit has idled since July.
Intrepid has also sought to recover the asset while filing complaints with Indonesian law enforcement authorities alleging fraud and embezzlement by the original shareholders of Indo Multi and associated parties, according to company officials.