VANCOUVER – Proxy advisory firm ISS is recommending shareholders of Baja Mining (TSX:BAJ) support a push to add two new directors to the company’s board who are backed by dissident shareholder Mount Kellet Capital Management.
However, ISS is also encouraging shareholders to vote against a plan by Mount Kellet that would remove two management-supported directors.
The firm said shareholders should support a move that would increase the size of the Baja Mining board to nine members to accommodate Mount Kellett managing director Stephen Lehner and Lorie Waisberg, a corporate director.
“Mount Kellett has made a case that minority change at the board level is warranted; however, has not made a compelling case for removing two incumbent directors,” ISS said in its report.
A shareholder vote is set for April.
Baja is building the Boleo copper-cobalt-zinc-manganese mine in Mexico. Copper production at the mine is expected to start in 2013.
Mount Kellett has accused the board and management of Baja Mining Corp. of failing to represent shareholders.
The investment manager holds a 19.9 per cent stake in company.
For its part, Baja Mining has accused Mount Kellett of a creeping takeover of the company, something the investment firm has denied.
Local news from metronews.ca/vancouver
About The Reporter
