Gold explorer Nyota Minerals (LON:NYO) has taken the axe to boardroom costs following the sale of a majority of its flagship project in Ethiopia to Kefi Minerals.
Chief executive Richard Chase, who survived an attempt to oust him by then major shareholder Centamin (LON:CEY) in November, has taken a 40% pay cut while non-executives Neil Maclachlan and Norman Ling are standing down.
Going forward, Nyota will focus on exploring its 100%-owned Northern Block tenements in Ethiopia, where consultant SRK has been appointed to conduct a competent person’s report.
Mike Langoulant, chairman of the company's Remuneration & Nomination Committee, said: "Scaling-down the size of the board is essential and it was unanimously agreed that the minimum size of three is also the right size for the time being. “
Nyota received £1.29mln in cash and 107mln Kefi (LON:KEFI) shares for the stake in Tulu Kapi and the two firms are now joint venture partners in the project.
Cash at the end of December was A$2mln, but Nyota added it will have to raise cash in the first half of 2014 to fund its share of on-going costs at Tulu Kapi and to carry out a focused exploration programme at the Northern Block properties.
Tulu Kapi was placed on care and maintenance while the sale transaction was negotiated, but KEFI's fieldwork has now started following the Ethiopian Ministry of Mines' renewal of the exploration licence.