Metallica Minerals Limited (ASX: MLM) announced that its suspended CEO and former Managing Director, Simon Slesarewich, has made legal claims against the company with respect to his employment as Metallica’s CEO.
Mr Slesarewich seeks payment of his contractual entitlements and a declaration that he validly terminated his employment following the Board's decision to suspend his employment pending an investigation. These claims come after Metallica refused to accept Mr Slesarewich's resignation while it was undertaking a review of Mr Slesarewich's conduct and performance, as a part of the broader review.
In clarification to Mr Slesarewich claims, Metallica Minerals stated that the Board has determined it would be inappropriate and premature to make any decision about Mr Slesarewich’s employment, or about his entitlements, while investigations are ongoing.
The company has engaged lawyers and will reportedly be defending the claim brought by Mr Slesarewich. It has further confirmed that it will continue to afford Mr Slesarewich procedural fairness in relation to the review.
Given Mr Slesarewich's involvement at both Board and Executive levels in the matters under review, the new Board considered it a matter of prudent management to suspend the CEO and former Managing Director pending completion of that review. The company believes that the action taken by the new Board demonstrates a high standard of operational accountability and strong governance.
The report read that the external review process has commenced and will be completed once all matters are addressed. Mr Slesarewich has been notified of the matters pertaining to the Urquhart Bauxite Project review process and his participation in that review has been sought.
During the period of Mr Slesarewich's suspension, the Board has moved to preserve the company’s operations and ensure minimal disruption. Therefore, it appointed Director, Scott Waddell, to the position of Interim Chief Executive Officer. He has in-depth experience in the resources industry, particularly on highly lucrative bauxite projects.
As per the latest Review Update, Metallica has completed the sale of 6.6 million shares in Australian Mines Limited for a consideration of $273,000; however, it continues to hold 10.2 million AUZ shares. The Group has also commenced a review of Urquhart Bauxite project development options and forecasts revenue.
The Board in conjunction with its joint venture partner continues to investigate into access arrangements for the barge-loading facility at the Urquhart Bauxite project to enable the bauxite to be exported. This includes possible access to the third-party owned Hey Point transshipping facility.
Following the completion of the review, the Board intends to address any issues identified in the review’s recommendations, and develop and execute on its strategic plan as it focuses on long?term value creation for all shareholders.
MLM stock price surged up by 8.696% to last trade at $0.025 on 3 April 2019. The market capitalisation of the company stands at $7.44 million.
Over the past 12 months, the stock has witnessed a negative performance change of 43.90% including a plunge of 23.33% recorded over the past three months.