Not long after appointing James Askew president, Rayrock Resources (RAY-T) beefed up its board by adding three directors with backgrounds in international exploration, mining and finance.
Michael Martineau, president of Samax Gold, financier Robert Matthews and mining engineer Robert Zerga replaced Bruce Burton, Walter O’Donoghue and Francis O’Kelly, who resigned to make way for the new directors.
Rayrock is attempting to fend off a takeover attempt by Vancouver-based Quest Ventures, which has requested a special meeting of shareholders to bring forward its proposal to remove Rayrock’s existing directors and replace them with its own nominees.
The meeting will be held Nov. 20 in Toronto. If successful, Quest would then proceed with a plan to liquidate Rayrock’s mining and investment assets.
Rayrock’s board is urging shareholders to reject Quest’s proposal. They say the proposal “does not comply with applicable law,” which requires that any liquidation have prior court approval, as well as the support of two-thirds of Rayrock’s shareholders.
“The Quest proposal would force the sale of Rayrock’s mining and other assets into a depressed market and would mean that Rayrock would be unlikely to get anything more than liquidation prices,” says Chairman John Hick. “The total amount of the proposed distributions to shareholders would be substantially less than the current going concern net asset value of Rayrock. Now is the time to build asset and shareholder value, not to liquidate.”
Rayrock operates three Nevada gold mines and a copper mine in northern Chile. It also holds numerous exploration projects.
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