Activist private equity fund Quantum Pacific has had a win in its long battle to gain control of Intrepid Mines, winning a push to establish a new board.
The activist fund succeeded today in its second attempt to remove directors and replace them with three of its own appointees in a move to return the company’s cash to shareholders.
Quantum had been hoping to remove five of the six directors and replace the five with three of its appointees, but shareholders only agreed to the removal of three. Chairman Ian McMaster and chief executive Scott Lowe were both retained.
“We look forward to working constructively with fellow Intrepid directors and in accordance with our fiduciary duties, to respond to shareholder expectations and determine a future of the company which will serve the best interests of all shareholders in a fair and transparent manner,” Greg Mazur of Quantum, one of the newly appointed directors, said.
Quantum Pacific, with Fides Capital Partners, who together control more than 5 per cent of Intrepid’s stock, requisitioned today’s meeting to take control of the board and return all of the company’s capital to shareholders.
Intrepid has a cash pile of around $176 million after receiving $US80 million in February to settle the long-running dispute over its controversial Indonesian copper and gold project, Tujuh Bukit.
Intrepid had been embroiled in a long battle over its 80 per cent stake in the world-class copper-gold mine project and was effectively kicked off the site in July 2012 by its Indonesian partner, who then transferred the ownership of Intrepid’s stake to a new vehicle.