Global Lithium Resources has appointed Dianmin Chen to run the company, after its executive chairman stepped down and shareholders approved a new board that wants to go ahead with developing its key lithium project in Western Australia.
Former executive chairman Ron Mitchell had turned to regulators to try to stop what he alleged was an undisclosed association among China-linked shareholders unlawfully seeking to take control of the company and its Manna lithium project.
Management froze development of the project late last year amid a protracted downturn in the battery raw material market, but some of Global Lithium’s biggest shareholders opposed the company’s strategy.
The battle posed a test for the Australian government which is pushing for critical minerals projects to drive economic growth and boost security links with the United States, its key global ally, while not wanting to anger its top resources customer, China.
Following Thursday’s board overhaul, the company said it will prioritise finalising a native title mining agreement with the Kakarra Part B Native title group, ahead of seeking a mining lease and completing a financial feasibility study.
It said it is also seeking a new chairman as it looks to “rebuild trust” with potential project partners. A 10-year supply agreement with China lithium chemicals maker Canmax Technologies expired in December.
Mitchell tendered his resignation and former chief financial officer Matthew Allen withdrew his nomination for director on Thursday after it became apparent the Australian government was not going to intervene to stop the vote.
He had alleged China-linked shareholders may have violated Australia’s takeover laws and the foreign takeovers act in reports to Australia’s Treasury last year as well as in filings to the Australian Securities Exchange, the Western Australian Supreme Court, and Australia’s Takeovers Panel.
The Takeovers Panel twice declined to review the allegations, but Australia’s Treasurer was still keeping a close eye on the situation, The Australian newspaper reported.
The Treasurer’s office did not immediately respond to a request for comment.
Global Lithium shareholders backed Perth-based businessman Liaoliang (Leon) Zhu, who controls the company’s third largest shareholder Sincerity Group, and mining executive Xiaoxuan (David) Sun, to join the board, the company said in an exchange filing.
Both Chen and Zhu are Australian citizens, the filing said.