A group of Guyana Goldfields Inc. shareholders, including founder and former executive chairman Patrick Sheridan, called for a special meeting by March 12 to replace the company's seven-member board.
Northfield Capital Corp., Robert Cudney, Donald Ross, Gretchen Ross and Sheridan, who collectively own at least a 5% stake, claimed that the current board is responsible for the loss of more than C$1 billion in shareholder value since 2016. They plan to nominate new directors who can address performance issues, resulting in a recovery in the company's share price.
The board made "seemingly irresponsible and misleading statements and generally questionable decisions" that have affected the company's share price. It also "continued to reward itself handsomely and has made no changes to the operational management of the Aurora gold mine in Guyana," Sheridan said.
In November 2018, Guyana Goldfields temporarily suspended underground development work to advance the exploration decline at the site's Mad Kiss area.
The shareholders are also seeking a mandate to create ethics and special committees and tap a leading Canadian bank as financial adviser to assist with a strategic review.
The nominees include Carmen Diges, Declan Franzmann, Doug Kirwin, Luc Lessard, Thomas Pladsen and James White.