Snow Lake Resources has filed a motion in the Manitoba courts to have a request by a small group of “concerned shareholders” to hold a special meeting to appoint a new group of directors be dismissed by the courts.
The company, which operates as Snow Lake Lithium, is seeking to develop a lithium mine near Snow Lake.
It is not yet clear why the shareholders – who hold a total of 5.4% of the company’s shares – made this request.
The group includes Avrohom Mordechai (Avi) Kimelman of Australia, a former director of the company and former CEO and director of Quantum Resources, which later changed its name to Nova Minerals Ltd.
Snow Lake Resources spun off from Nova in an initial public offering in November 2021, raising $27.6 million at a price of $7.50 per share. The shares were trading around $2.64 on Thursday.
Nova Minerals still owns 37% of Snow Lake.
Snow Lake Lithium CEO Phillip Gross, who was also named chairman of the board in June after the former chairman resigned, downplayed the shareholder’s request.
“It’s a nuisance and a distraction,” Gross said. “The real goal is to grow the business.”
In November, Kimelman was found guilty of insider trading and market manipulation in Australia.
According to the Australian Securities and Investments Commission, he is automatically barred from managing companies for five years from the date of his conviction.
According to its latest data, Snow Lake Lithium could produce 160,000 tonnes per year of 6% lithium concentrate over a period of 8 to 10 years.
Lithium is a key element in the manufacture of batteries and with the dramatic increase in the production of electric vehicles, the demand for this product is increasingly spectacular, is expected to double by 2024 and increase by a further 58% by here 2030.
Snow Lake Lithium is looking to build the world’s first all-electric mine near Snow Lake. Additionally, company officials are talking with potential partners in hopes of building a lithium processing facility in Manitoba, with CentrePort Rail Park being one of the first potential sites.
By 2030, lithium demand will reach 1,500 metric tons. Less than 0.5% of global lithium production comes from Canada. (The Tanco mine near Bernic Lake in eastern Manitoba produces a small amount of lithium).
In its filings, Snow Lake said the request for a special meeting was not valid under Manitoba’s Corporations Act because an annual general meeting and a special meeting of shareholders of the company have already been held. convened by the Board of Directors for December 15, 2022.
The “concerned shareholders” demand the dismissal of all directors of the company; set the number of directors at six for the following year; and elect six directors nominated by the shareholders concerned.
Martin Cash has written a column and business news for the Free Press since 1989. During those years he wrote through a number of economic cycles and the rise and fall (and rise) of the fortunes of many local businesses .
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