ZincOx Resources confirm major shareholder support, over 50% against rebellious minority

The board of ZincOx Resources (AIM: ZOX) has found reassurance among its major shareholders following a recent general meeting requisition to oust six directors by two minor shareholders with a combined 5% stake in the company. Today, Zincox said that it has received written confirmations representing more than 50% of the company’s issued shares.

The rebel shareholders propose the removal of six of the company’s current directors, to be replaced by two new directors, Russ Robinson and Barry Hamilton.

On 16 March 2010, the company received notice of requisition for a general meeting from two of its shareholders which together hold 5% of its issued share capital. In a separate statement, the shareholders identified themselves as Aldersgate Investment Managers and US SDR LLC.

This morning, the company said that the information has been passed to the requisitioning shareholders, and if the requisition is not withdrawn, it is expected that a general meeting will be held on Friday 23 April.

ZincOx's main projects are the Jabali zinc oxide deposit in Yemen and the development of a zinc reclamation operation in North America, the Ohio Recycling Plant. The planned ORP is the company’s most advanced recycling project which will process electric arc furnace dust (EAFD), a by-product from steel recycling processes, to produce zinc. According to ZincOx, EAFD contains about four times more zinc than the average natural deposit. EAFD generally contains between 18% and 25% zinc.

Russ Robinson is the principal owner of US SDR LLC, which was founded in 2006 to build and operate Waelz Kiln processing plants to recycle EAFD to produce zinc oxide and waelz iron product. US SDR sold its Waelz Kiln plant in Alabama in October 2009.

The six directors named by the minority shareholders consist of executive chairman Andrew Woollett, managing director Peter Wynter Bee, finance director Simon Hall, technical and production director Jacques Dewalens, project development director Simon Mulholland and non-executive director Gilles Masson.

In terms of shareholdings, Aldersgate is ZincOx’s seventh largest significant shareholder with approximately 4.4% of the company. ZincOx’s three largest shareholders are Heogh Capital Partners with 12.8%, M&G Securities with 9.1% and Sloane Robinson Investment with 9.5%. The company’s other significant shareholders include Sisu (4.9%), JP Morgan (6%) and Teck (7.1%).

http://www.proactiveinvestors.co.uk/companies/news/15069/zincox-resources-confirm-major-shareholder-support-over-50-against-rebellious-minority-15069.html