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Copper developer Chariot rejects Lundin board nominees

Chariot Resources shareholders have rejected a slate of directors nominated by 18% shareholder, Lindin Mining.

Posted: Friday , 04 Sep 2009

TORONTO (Reuters) - 

Shareholders of Chariot Resources Ltd (CHD.TO: Quote) on Friday, reelected the incumbent board of directors, rejecting a slate nominated by Lundin Mining (LUN.TO: Quote) Chairman Lukas Lundin.

The shareholders also shot down a motion proposed by the dissident slate to adjourn the shareholder meeting.

Chariot had accused the Lundin nominees of attempting to seize control of Chariot without paying a control premium.

Speculation that Lundin Mining could try to acquire Chariot or its Mina Justa copper project in Peru has intensified since the proxy fight -- led by Lukas Lundin and Lundin Mining Director Brian Edgar -- was revealed last month.

Lundin Mining owns more than 18 percent of Chariot Resources.

Lundin Mining has stated that it does not plan to acquire Chariot Resources, or its key project in Peru. The company said it was not directly involved in the proxy fight led by its chairman to remove Chariot's board.

However, Lundin Chief Executive Phil Wright had said the company would support the alternative slate of directors.

At the beginning of the shareholder meeting, the dissident slate moved to adjourn the meeting, alleging that they had not been given the opportunity to review all the proxies.

"We move to adjourn the meeting until such time that we had had a chance to review all the proxies provided," said a representative of the dissident slate.

However, shareholders controlling 106 million shares voted to reject the motion to adjourn, overruling the 95 million shares votes in favor of the adjournment.

The dissident slate protested the results of the shareholder vote and have requested for the opportunity to examine all the proxies provided.

Chariot Chief Executive Ulli Rath said the dissident slate will have the opportunity to review all the proxies submitted. (Reporting by Euan Rocha; Editing by Frank McGurty)

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