A shareholder rift over millions of dollars in executive pay at Snow Lake Resources (NASDAQ: LITM) is rattling the explorer’s plans to develop a lithium project in northwest Manitoba.
Management postponed a shareholder’s meeting today until January after an investors’ group that controls 42% of the company said it would try to vote out chief executive officer Philip Gross, chief operating officer Derek Knight and chief financial officer Mario Miranda.
Shorecrest Group, a Toronto-based advisor representing the Concerned Shareholders of Snow Lake, accuses Gross and the board of directors of enriching themselves with more than C$6 million for just seven months of service, according to company documents. The board tried to raise millions more in cash by diluting shares by 55% in a proposed stock sale in September that was blocked by a provincial court injunction.
“The existing collaborating directors have continued to burn through millions of dollars of the company’s money to keep their jobs,” Shorecrest wrote in a proxy circular for the aborted meeting.
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