Hardey Resources Ltd. said its entire board will step down as part of a plan to reverse the ASX's decision to delist the company over its acquisition of the Nelly vanadium mine in Argentina and six assets held by Vanadium Mining Pty. Ltd.
In a January statement, the ASX noted that Hardey was willing to pay Adam Blumenthal's Everblu Capital Pty. Ltd. between 52.55% and 64.6% of the deal value for a "mere introduction" to the assets' vendors.
In a March 8 release, the company said it will appoint an new interim five-member board — consisting of John Hannaford, David Izzard, Brian Thomas, Scott Paterson and Nick Johansen, which will evaluate the deal and determine if it should proceed.
Should the new board reject the deals, Hardey is required to return the shares it acquired back to the vendors, which must also cancel the consideration securities issued to them through a selective capital return.
The vendors will also have to turn over to Hardey the sale proceeds from the 25 million Hardey shares they sold to recoup administrative costs. Meanwhile, all consideration securities issued to Aceglow Holdings Pty. Ltd. and Energy Capital Partners Pty. Ltd., which were used as conduits by Blumenthal, will also be voided.
Should Hardey shareholders fail to approve the cancellation of the consideration securities, the parties will engage in talks that may lead to the sale of the securities.
In addition, Hardey shareholders will nominate new directors for election, pending the review of an adjudicator.