London-listed miner Metal Tiger announced plans today to oust the board of Australia's Kingsgate Consolidated Limited (KCN) to "preserve and enhance" shareholder value.
The Thailand-focused, small-cap miner, which is Kingsgate's largest shareholder with a 6.7 per cent stake, has requested a general meeting to replace all but one of the company's current directors and appoint five new names to the board, including Metal Tiger's chief executive Michael McNeilly and two of the company's non-executive directors.
Kingsgate is required to call a meeting within 21 days of receiving the request.
McNeilly said Kingsgate was in "urgent need of board renewal".
“The incumbent board has overseen a massive destruction of shareholder value and failed to articulate a clear strategy going forward. The board of Metal Tiger shares the view that they are not the right team to lead KCN in its current situation," he said.
Kingsgate owns Thailand's only gold mine, Chatree, which the government closed last December. Its shares reached a peak of around 12.15 Australian dollars in 2010, but have slumped since. At the time of writing, the firm's shares were down 2.15 per cent at 0.46 Australian dollars.
UK-based Metal Tiger said it was concerned with the board of Kingsgate's current governance and approach as they had overseen the closure of the Chatree mine following a long-running dispute with the Thai government.
Shares in Aim-listed Metal Tiger were up 3.95 per cent at 2.23p at the time of writing.
Kingsgate did not immediately respond to a request for comment.