Two Genco Resources (GGC-T) directors resigned yesterday amidst a brewing boardroom battle started by the company’s largest shareholder, James Anderson, who wants to replace three of seven board members in an upcoming proxy vote.
Genco reported that Leslie Goodman has orally advised the company of his resignation and that he plans to give written notice soon. Genco did not give a reason for Goodman’s resignation.
Late yesterday evening, Anderson issued a press release saying that he has received a letter from director Eduardo Luna, advising of his resignation from the board. Genco has not yet reported Luna’s resignation.
Anderson, who along with his wife holds 12.2% of Genco’s shares, wants to replace chairman Robert Gardner and directors Gordon Blankstein and Brian Smith at the June 26 shareholders meeting with himself and two others; Charles Schroeder and Lyle Weismantel.
After stepping down from the board in May, frustrated at the way the company was being run, Anderson initiated the proxy solicitation process, and created the website www.savegenco.com to inform shareholders of his concerns and plans for the company.
Anderson’s complaints include overcompensation, poor mine management and corporate governance issues.
Genco operates the La Guitarra silver mine in Mexico, which currently runs at about 250 tonnes per day with the potential to reach 340 tonnes per day. The company plans to increase production to 3,000 tonnes per day by 2010 to produce 6 million silver-equivalent oz. per year.
Genco president Greg Liller and vice president of finance and corporate secretary Wayne Moorehouse say they will resign if Anderson, Schroeder and Weismantel are elected.
The other members of the board are Richard Hughes and James McDonald.
Genco has set a deadline of June 24 at 11 a.m. (Vancouver time) for shareholders wishing to vote a white proxy (in favour of the company).
Anderson has asked shareholders to submit their yellow proxies (in favour of him) on June 23 at 11 a.m. (Vancouver time).
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