NEW YORK Moly Mines Ltd. will replace four members of its board of directors, including Liu Han, chief executive officer of majority shareholder Sichuan Hanlong (Group) Co. Ltd.
Liu will be replaced as a director by his current alternate, Nelson Chen, at Moly Mines annual general meeting May 31. The company said last month it was "seeking clarification from Hanlong" after Liu reportedly was detained by authorities in China (amm.com, March 20).
Perth, Australia-based Moly Mines also will replace the three current independent directors with new independent directors during the six months following the annual meeting. The company said it has engaged an international recruitment firm to find appropriate candidates.
"Hanlong has advised (Moly Mines) that it maintains its support for (the companys mergers-and-acquisitions) strategy," Moly Mines said. "Although it is unlikely that Hanlong will be in a position to directly financially support an acquisition or project development by the company in the near future, Hanlong would seek to assist the company to secure finance from Chinese banks and other sources."
Chengdu, China-based Hanlong holds a 56.8-percent stake in Moly Mines, according to AMM sister publication Metal Bulletin.
Moly Mines operates an iron ore mine in Western Australia and had been developing a molybdenum-copper mine in the same region before it was put on hold in 2011 due to challenging economic conditions (amm.com, Dec. 29, 2011).