Me­tal­lica at­tacks Gil­lies to stave off re­volt

Townsville Bulletin - - NEWS | BUSINESS -

THE direc­tors of Me­tal­lica Min­er­als have harshly crit­i­cised the track record of com­pany founder An­drew Gil­lies as part of their fight­back against a share­holder re­volt.

Rebel in­vestors in the Bris­bane-based ju­nior baux­ite ex­plorer hope to reap­point Gil­lies and two other ex­ec­u­tives at a spe­cial meet­ing sched­uled for Fe­bru­ary 1 to spill the board.

But yes­ter­day Me­tal­lica said Gil­lies’ re­turn should be “avoided’’ and is a mat­ter “of crit­i­cal con­cern to all share­hold­ers’’ since he was un­able to bring a sin­gle pro­ject into pro­duc­tion.

Gil­lies, who spent 10 years at the helm be­fore step­ping down in 2015 and re­sign­ing from the board in 2017, was “ar­guably out of touch with the di­rec­tion of Me­tal­lica”, its ASX re­lease said.

Dur­ing his ten­ure, more than $20 mil­lion was spent on a cobalt/nickel pro­ject that never pro­gressed be­yond a pre-fea­si­bil­ity study. It was sold in late 2017 for $10 mil­lion.

Me­tal­lica also noted that Gil­lies be­lieved the com­pany would never re­ceive ap­proval for an ac­cess road at its baux­ite pro­ject near Weipa. “Such ac­cess has re­cently been granted,’’ it said.

Gil­lies fired back yes­ter­day, ac­cus­ing the com­pany of “spin and pro­pa­ganda’’.

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