New Millennium Iron Corp. is involved in among the messiest proxy fights the junior mining sector has seen shortly. A dissident group wants the company to “dramatically” cut expenses to preserve capital, including compensation. It’s looking to assume control within the board.
If the two sides fail to reach funds, chief executive Robert Patzelt said he is confident the incumbent board will prevail at the company’s annual meeting in a few days.
“I’m confident the best result may ultimately prevail,” he said in an interview.
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He also said he continues to have a great working relationship with Indian steel giant Tata Steel Ltd., which owns 26.2 per cent of New Millennium stock.
New Millennium is one several junior miners with projects in the Labrador Trough that suffer because of plummeting iron ore prices. While Patzelt will follow the dissidents that the company needs to be prudent using its capital within this bear market, he thinks it’s a mistake to prevent spending as far as his opponents want.
“You lose connections with your stakeholders. All that momentum sheds,” he said.
He still hopes the two sides can settle their differences before the annual meeting.
