Wildcat Resources shareholders have signed off on a $28.8 million windfall for director Alex Hewlett after he made the connection that ultimately led to Chris Ellison’s Mineral Resources emerging as a major backer.
The vote granting Mr Hewlett an introduction fee of 30 million shares in the white-hot lithium explorer passed despite analysis of the poll showing MinRes was opposed.
Mr Hewlett was due an introduction fee for his role in Wildcat acquiring the Tabba Tabba lithium project via a deal struck in May with James McClements-founded Resource Capital Fund and RCF-controlled Global Advanced Metals.
Wildcat Resources executive director Matthew Banks. Shareholders green-lit the issue of 7,142,857 shares to him. AFR
MinRes, which is chaired by Mr McClements, revealed that it had become Wildcat’s biggest shareholder with a 19.9 per cent stake.
MinRes paid $158.7 million for a block of shares traded by RCF and Global Advanced in building its stake. The shares that changed hands were valued at about $6.5 million in May. RELATED QUOTES MINMineral Resources
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The shareholder vote at the Wildcat annual general meeting in Perth on Monday delivered a massive on-paper payday for Mr Hewlett.
The poll results indicate MinRes tried to vote down all resolutions on share issues to Wildcat directors and abstained from voting on other matters, including the remuneration report.
Wildcat’s market capitalisation was just $19 million in May, but the backing from MinRes and excitement around Tabba Tabba exploration work took it to nearly $1 billion on Monday. Wildcat’s shares have surged from 3¢ in May to 91.5¢ on Monday.
Tabba Tabba is close to the Wodgina lithium mine jointly owned by MinRes and New York-listed Albemarle in WA’s Pilbara region.
MinRes and Gina Rinehart’s Hancock Prospecting are at the forefront of a lithium land grab around established mines in WA that shows no sign of slowing despite the slump in prices for the battery ingredient.
Mr Hewlett and others in the Wildcat team previously had links to Delta Lithium, where Mr Ellison is now chairman and MinRes is a major shareholder alongside Hancock Prospecting.
Mr Hewlett’s 30 million share issue was passed at a Wildcat meeting on July 14, but the stock could not be issued within a month because the Foreign Investment Review Board was still looking at a royalty payable to US-based Global Advanced as part of the Tabba Tabba sale.
On Monday, shareholders again signed off on Mr Hewlett being able to participate in 3.5¢ per share raising from May to the tune of 2,857,143 shares.The approval delivered Mr Hewlett a further $2.4 million on paper at the 95¢ share price.
Wildcat executive director Matthew Banks, a one-time journeyman footballer for AFL club Essendon, also needed fresh sign-off from shareholders on participation in the May raising. Shareholders green-lit the issue of 7,142,857 shares worth $6.5 million on paper to Mr Banks.
The AGM also approved director Jeff Elliott’s 11,428,571 shares, delivering him $10.5 million on paper.
Mr Banks said Wildcat’s “exceptional team has made what looks to be a potential tier-1 discovery in the heart of the Pilbara, the No.1 lithium province in the world”.
“We are now developing an industry-leading development team to further unlock value for are shareholders,” he said.
Tabba Tabba is about 90 kilometres from Wodgina, about 50 kilometres from Pilbara Minerals’ Pilgangoora mine, and about 200 kilometres from Azure Minerals’ Andover project.
Mr Ellison has muscled his way into a brewing takeover battle over lithium play Azure Minerals that already involves New York-listed SQM and Hancock Prospecting.
MinRes declared a 12.29 per cent stake in Azure late last week after it spent Friday forking out more than $78.5 million on shares at an average price of $3.95.
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