Marimaca eyes ASX dual listing to boost Chile project
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Blue Moon Metals (TSXV: MOON), a small developer that’s seen a shareholder battle over dilutive capital raisings, has chosen former Adventus Mining CEO Christian Kargl-Simard as its new head.
The appointment on Friday replaces Blue Moon’s Patrick McGrath and culminates a series of board changes this month to bring on respected mining industry leaders. They include former Iamgold (TSX: IMG; NYSE: IAG) interim CEO Maryse Belanger and Wheaton Precious Metals (TSX: WPM, NYSE: WPM; LSE: WPM) corporate development vice-president Haytham Hodaly.
Vancouver-based Blue Moon’s stock shed a penny by mid-Friday in Toronto to C$0.33 apiece, valuing the company at C$17.4 million. It’s advancing a first-resource-stage zinc-silver project in California.
A minority group of shareholders led by Michael McClintock said in August they had expected McGrath, who remains on the board for the time being, to step down as CEO. The group increased pressure on McGrath after he approved a 10-to-one share roll back last year and several defensive capital raisings at below-market values. Documents show the financings diluted shares and benefited only a few shareholders.
“Mr. McGrath’s continued presence may divert focus from the company’s strategic objectives and potentially impact shareholder confidence,” McClintock said by email on Friday. “We remain hopeful that Blue Moon’s leadership will prioritize restoring investor and stakeholder confidence, which is critically required to successfully advance its mineral assets.”
Kargl-Simard was head of Adventus when Silvercorp Metals (TSX: SVM; NYSE: SVM) bought it this year for C$235 million. Before starting Adventus in 2016, he worked for a decade in investment banking at Raymond James and Haywood Securities. He was involved in C$7 billion in financings and 35 mergers and acquisitions, Blue Moon said in a release.
The incoming president and CEO, who was elected to a board position at the company’s annual general meeting on Oct. 17, starts immediately in the new role. He brought along former Adventus CFO Frances Kwong to replace Varun Prasad at the same post.
“We advanced a similar type of project from the exploration stage to permitted for construction,” Kargl-Simard said in the release. “We are excited to advance the Blue Moon deposit but are also actively looking to add additional copper or big zinc projects to augment our already strong base.”
McClintock welcomed the new management.
“This team brings strength and promise to the company,” he said. “We are optimistic that their expertise and fresh perspectives will help unlock the full potential of Blue Moon’s volcanogenic massive sulphide asset.”
Blue Moon upgraded the project’s resource a year ago. It holds 3.5 million indicated tonnes grading 6.14% zinc, 0.75% copper, 1.54 grams silver per tonne, 0.05 gram gold and 0.24% lead for 431 million lb. contained zinc, 53 million lb. copper 17 million lb. lead, 5 million oz. silver and 200,000 oz. gold.
The project has 3.8 million inferred tonnes grading 5.94% zinc, 0.59% copper, 1.56 grams silver, 0.05 gram gold and 0.34% lead for 455 million lb. zinc, 45 million lb. copper, 26 million lb. lead, 6 million oz. silver and 200,000 oz. gold.
Blue Moon on Friday also appointed Kuya Silver (CSE: KUYA) chief operating officer Christian Aramayo as a board advisor, the same role he held at Adventus. Also newly advising the board is Garfield MacVeigh, a geologist on Blue Moon’s project for 35 years. McGrath is to remain on the board through its transition, the company said.
