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Stratex chief stands down after losing Crusader merger vote

Removal of Marcus Engelbrecht was one of two resolutions passed at the meeting
picture of gold
Gold miner Stratex will take time to decide its future

Marcus Engelbrecht, Stratex International PLC's (LON:STI) chief executive, has stepped down from the junior miner's board after dissident shareholders voted down a proposed merger with Aussie-listed Crusader Resources (ASX:CAS).

Removal of Engelbrecht was one of two resolutions passed at the meeting, along with a resolution to scrap the merger with Crusader.

READ: Stratex issues rebuttal to proposals from dissident shareholders

Shares in Stratex, which had been suspended before the vote, resumed trading once the result was known rising 19% to 1.4p.

The dissident shareholders, which included two former Stratex directors David Hall and Paul Foord, have been vocal in their criticism of the Crusader merger ever since it was first announced in May.

The share based-deal valued Crusader at £31.1mln (A$54.2mln) and would have seen its shareholders end up with an 81% stake in the enlarged company.

At the time Crusader had two advanced gold projects in Brazil, Borborema and Juruena, with combined JORC-compliant resources of 2.7Moz Au, as well as the Posse iron ore mine, which it subsequently agreed to sell.

Stratex, meanwhile, has assets in Djibouti, Egypt and Turkey and one of the proposals put forward by the dissidents is to merge Stratex with Thani Stratex its partner in Djibouti. Hall and Foord are directors of Thani Stratex.

The resolution for chairman Peter Addison to be removed was not passed at the general meeting, which meant Hall and Foord were not elected to the Stratex board.

Stratex said it would now consider the outcome of the meeting including the proposed acquisition of Crusader.

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