BUSINESS

COMPANIES

New attempt to oust Kennedy from Marmota

Peter Gill

Apr 07, 2015

Marmota chairman Robert Kennedy

Marmota Energy’s largest shareholder is again attempting to oust the company’s chairman, high profile Adelaide businessman Robert Kennedy.

Dr Colin Rose, a Sydney-based professional investor and academic economist, says he has “lost confidence” in Kennedy.

With support from the second largest shareholder, Rose has requisitioned a general meeting of the uranium explorer’s shareholders, scheduled for 1 May, to consider motions to remove Kennedy as a director and add Rose as a director.

Rose said he moved to formally remove Kennedy because the company risked becoming a “stranded whale” through a lack of cash.

“If you go back about three years the company had about $3 million in cash in the kitty; in the last year that has dwindled downwards to the point where at the end of the current quarter there will be about $500,000 left in reserves,” Rose told InDaily.

“Most of that money has been spent on essentially directors’ fees and administration. In the last year there has been almost no drilling.

“The company is not without prospects but … if we didn’t act now, by the time it came to the next annual general meeting (in late 2015) the company’s cash position would be down to zero.

“Companies that have cash positions down to zero are left like stranded whales – they can’t raise capital, they can’t drill, they just get stuck.”

Kennedy rejected Rose’s assertion claiming Marmota had spent $1.4 million on exploration in 2014.

“Whilst expenditure on exploration has reduced it is due to the lack of available capital consistent with the change in the market due to the decline of commodity prices,” Kennedy told InDaily.

“However, the company continues to explore within the available funds. As an alternate to spending company monies for exploration it has joint ventured tenements with other companies who are carrying out exploration to earn their interest in the tenements.

“The directors have no intention of running down the company’s capital to zero. In fact, Dr Rose’s action is delaying legitimate capital raising by his threats to ‘injunct, revoke, reject, unwind, and/or annul’ any capital raising whilst he attempts to take control of the company.”

Rose says he has spoken to a number of the top 20 shareholders and believes he has “dominant” support for his resolution to remove Kennedy from the Marmota board.

https://www.indaily.com.au/news/business/companies/2015/04/07/new-attempt-to-oust-kennedy-from-marmota

Ironic that the previous management proved up the resources and nothing's been done since apart from a lot of tin rattling. A decade of no resource development whilst all around others are developing assets and getting insto support. Hmmm.

Capitalised drilling expenses is never a great sign and maybe the auditors need to assign a more senior person.

So the gold project isn't stacking up and Uranium is the hot topic so focus on that.

No wait, maybe REEs may get a better pump in SP.

Maybe one day there will be a resource that may be worth something to someone.

Until then keep trading the pumps and get out of the way of the dumps.

oh the irony indeed