A property developer is trying to roll the board of Global Lithium
A Perth property developer has taken a second run at rolling the board of Global Lithium Resources, which is backed by Mineral Resources and Hancock Prospecting.
Perth property developer Sincerity Development is taking a second run at trying to roll the board of Global Lithium Resources after a failed attempt to kick off the process earlier this week.
Depending on how the board tilt progresses, it could set up a battle with Chris Ellison’s Mineral Resources which holds a 10 per cent stake in Global Lithium, and Gina Rinehart’s Hancock Prospecting which is understood to sit somewhere below 5 per cent.
Sincerity, whose sole director is Perth-based Liaoliang (Leon) Zhu, submitted an invalid 249D requisition earlier this week, in a bid to call a meeting of shareholders with a view to removing independent non-executive directors Greg Lilleyman and Hayley Lawrance.
That notice also put forward a Barry Mitchell as Sincerity’s nominee to the board, however Global Lithium found that the request was invalid.
Global said on Friday Sincerity had come back with a valid request, however this time is seeking to have Mr Zhu appointed to the board.
The new requisition notice also seeks to limit the number of directors on the Global Lithium board to three.
“Global Lithium is currently considering the revised requisition notices ... and will continue to keep shareholders updated on any material developments,’’ the company told the ASX.
Sincerity currently owns 6.9 per cent of the share register, with Yongfang Guo owning 6.3 per cent, Chinese company Canmax 9.6 per cent, and major Australian lithium producer Mineral Resources 10 per cent.
Global Lithium’s management also owns 5.3 per cent.
Global Lithium is currently proving up the Manna lithium deposit near Kalgoorlie, which currently has a resource of 51.6 million tonnes at 1 per cent lithium oxide, which it says is the second-largest lithium resource in the region.
The Sincerity Group website says it is a property developer with branches in Perth and across Australia, as well as China, Malaysia and Indonesia.
It offers a range of building and property development services as well as migration services.
Mr Zhu is a director of several companies including China Dong Da Construction Investment (Aus), Dongwei Group, Kangaroo Food Trailers and Prajna Block Chain Capital.
Global Lithium executive chair Ron Mitchell said it was hard to see what value Mr Zhu might bring to the board.
“The timing of the invalid 249D notice by Sincerity Development earlier this week, and now the revised notice, appears opportunistic and not in the best interest of all shareholders,’’ Mitchell said.
“There are several value-accretive near-term milestones in front of Global Lithium that will continue to derisk and progress the Manna lithium project and drive long-term shareholder value.
“We have had very limited formal engagement with Mr Zhu and Sincerity Development, which we understand is a property development, migration and education business.
“We cannot understand how Mr Zhu’s experience in property will enhance the key skills of the board and assist in advancing the Manna project, particularly if we lost two very experienced mining and corporate governance directors.’’
Mr Mitchell said the company was currently considering the revised notice and “We will also continue to make decisions that are in the best interests of all Global Lithium shareholders”.
Global Lithium, which is valued at $66.4m has $27m in cash on hand and no debt.
The company is expecting to finalise a definitive feasibility study into the Manna project before the end of this calendar year.