Troubled junior gold company Guyana Goldfields Inc. has agreed to replace its chief executive officer and is parting ways with three board members, as it reached a proxy settlement with a dissident shareholder group.
A week ago, Guyana said it was standing behind its CEO, while painting a picture of dissident ringleader Patrick Sheridan as an irresponsible rogue.
But on Monday, Toronto-based Guyana said it is now looking for a replacement for Scott Caldwell, who had led the miner since 2013. Guyana also said that long-time board members Jean-Pierre Chauvin, Michael Richings and David Beatty are stepping down immediately.
The developments are a partial victory for a dissident shareholder group led by Guyana’s founder, Mr. Sheridan, who launched a campaign in January with the objective of ousting Mr. Caldwell and tossing out the entire board of directors.
In a revised director slate unveiled on Monday, Guyana proposed that Alan Pangbourne, former SSR Mining executive and originally a dissident nominee, should join the board. The company also nominated Allen Palmiere, onetime CEO of Hudbay Minerals Inc., as a board member. Ian Robertson, a spokesperson for Mr. Sheridan, said that Mr. Palmiere was approved by both the company and Mr. Sheridan.