Mining company Robex Resources (RBX) has released a response to the legal actions of a group of its minority shareholders.
The company has been informed that some shareholders have filed an application for relief orders in Quebec’s Superior Court.
Contained within were allegations which the shareholders had made against Robex Resources, its directors and officers, and the Cohen family. The company did not reveal the exact nature of these allegations, but was eager to denounce them as unfounded and untrue.
In its response, Robex Resources stated that the company follows all applicable rules of good governance, and has always acted in the best interests of its shareholders. The company certainly felt that this was reflected in the last shareholders’ meeting on June 26, 2020, when the directors were re-elected with over 97.6 per cent of votes cast.
Robex Resources also sought to address comments about the company’s financing, as well as compensation of its management team. During the 2019 financial year, the company contracted an independent specialist company to analyse its compensation practices, resulting in the conclusion that compensation was in line with industry standards.
Moreover, the company took the opportunity to express its support for the Cohen family, who were mentioned in the allegations made by shareholders.
“Robex points out that it has been able to count on funding from the Cohen family at critical times to keep it going, even when the price of gold has been at historic lows over the past decade and the stock markets were unfavourable to the mining sector in general,” the announcement read.
Robex Resources also defended its management of the company’s main asset, the Nampala mine in Mali. In the beginning, the mine was a deposit considered to be of insufficient quality and low-grade quantity, in a country ravaged by war, political tension, and Ebola.
However, Robex Resources has since invested over C$70 million in the development of commissioning of the mine. The Nampala mine has now graduated from exploration to production, and is operating profitably.
In the announcement, Robex Resources made it clear how the company plans to respond to the allegations against it.
“Robex intends to vigorously challenge the claim and set the record straight under the applicable procedure,” the announcement read.
That said, the company has also stated that it does not intend to comment any further on the ongoing legal proceedings.
Robex Resources (RBX) is up 5.05 per cent and is trading at 52. cents per share at 1:01pm EDT.