Asa Resource Group Plc has fired its non-executive director, Yuan Hu Ching who was an appointee of China International Mining Group Corporation (CIMGC) in the board.
This follows the dismissal of chief executive Yat Hoi Ning and finance director Yum Kwan from the Asa Resources board over allegations of externalisation and misappropriation of funds.
CIMGC under its relationship agreement with Asa Resource is entitled to nominate two non-executive directors to the Board. At the time of the announcement no such nominations, however, had been received.
“The Board of Asa Resource Group Plc report that a number of decisions have been taken to consolidate the structure and operation of the group following the recent removal of two executive directors.
“Yuan Hu Ching, an appointee of China International Mining Group Corporation has been removed from office as a non-executive director,” said Asa Resources.
“CIMGC is entitled, under its relationship agreement with Asa Resource, to nominate two non-executive directors to the Board although, at the time of this announcement, no such nominations have been received,” said the company.
Mr Ian Barry Dearing, the group legal advisor has, however, been appointed as an executive director to enable continuity of restoration of a proper corporate governance structure within the Group.
Mr Conrad Mukanganga has been appointed assistant company secretary of the group with responsibility for the secretarial functions of Bindura Nickel Corporation and Freda Rebecca Gold Mine and administration of the Group’s other subsidiaries.
“Mr Mukanganga was in the process of being retrenched at the instance of the former executive but was welcomed back by the directors of FRGM and BNC,” said Asa Resources.
The board met with directors of BNC and FRGM and restated the position that both companies are operated on an independent basis and that the boards of BNC and FRGM are responsible for governing the actions of their own executives without interference from Asa Resource.
Mr Toindepi Muganyi will retain responsibility for FRGM and Mr Batirai Manhando is still responsible for BNC’s operations while both will also be undertaking additional roles in relation to the wider Group.
Asa Resources said mining plans at BNC have been restored to those recommended by the local operational teams and supported by the BNC board.The financial structure of the group has been consolidated by confirmation of Jan Lampen as financial controller of both BNC and FRGM.The diversified mining group said FRGM has implemented urgent works to repair Mill 2 so that full processing could be restored within a matter of months.
“Group administration is to be properly concentrated in Zimbabwe at the Asa Complex in Bindura so that there is ease of communication between the Group’s executive team and the major subsidiaries.
“The lease of the Hong Kong offices has been terminated with the saving of up to 10 jobs. The Board firmly believes the direction of the Group’s operations are now in the hands of a competent Zimbabwean team,” said Asa Resources.
Senior Independent director for Asa Resources Dr Scott Morrison, said the group has acted swiftly and decisively to protect and stabilise FRGM and BNC..
“We may provide guidance and facilitate proper changes, but we will not interfere with day-to-day management. We have every confidence in our operational teams and look forward to supporting them in the months ahead,” said Mr Morrison.
Asa Resources Interim chief executive Mr Muganyi said; “I am delighted that the Board has pledged its support to Mr Manhando and me and given us the opportunity to show what we can do.
“I have every confidence that this trust and support will be sufficient to enable us to restore value to the Group within the next year,” said Mr Muganyi.