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  • Klondex Mines Gets New Chairman As Phillips Steps Down; Mining Veteran Appointed As Special Advisor 0 comments
    Sep 16, 2013 3:14 PM | about stocks: KLNDF

    Klondex Mines (TSE:KDX) (OTCQX: KLNDF) has announced some changes to its board of directors, saying Larry Phillips has resigned as chairman, to be replaced in the interim by current member Blair Schultz. The company has also appointed Richard J. Hall as a special advisor to the board.

    Hall and current president and CEO of Klondex, Paul Huet, previously worked together at Premier Gold Mines, where Huet was COO and Hall was chairman, according to the gold development company's statement released late Friday.

    Hall, who will help Klondex and advise the board on strategic opportunities, brings over 40 years of mining, exploration, development and corporate experience, having also worked as a director of Iamgold (TSE:IMG), Kaminak Gold, Gold Canyon Resources and Marlin Gold. He was also president and CEO of Northgate Minerals, when the company was acquired by AuRico Gold (TSE:AUQ).

    In addition, Hall was chairman of Grayd Resource Corp., when Grayd was acquired by Agnico Eagle Mines (TSE:AEM), as well as president and CEO of Metallica Resources, which was part of a $1.6-billion merger with Peak Gold and New Gold to form what is now New Gold Inc.

    Klondex is developing its high grade Fire Creek project in Nevada, with initial production from bulk sampling at the project due to start later this year. Being surrounded by major producers, the Fire Creek property is as expected also proximate to transportation, infrastructure and a milling facility in the heart of the U.S. state's gold trend. Apart from the Rapid Infiltration Basin permit, which has been submitted, most other major permitting is in place.

    "Having worked with Ritch in the past, I gained a tremendous amount of respect for his experience and valued advice. I'm thrilled that he will be helping Klondex evaluate growth opportunities while we continue to unlock the value at Fire Creek," said Huet in the release on Friday.

    Last month, the company completed the first shipment of mineralized material to Newmont Mining (NYSE:NEM) under a processing agreement signed between the two parties earlier this summer. The agreement with Newmont is part of the gold development company's way to monetize its high grade material.

    Klondex cited in the statement Friday increasing demands on Phillips' time as the reason for his departure, making it "difficult to maintain the day-to-day role as chairman" due to involvements with several other company boards and personal commitments.

    "I'd like to thank Larry for his counsel and steady hand while he was Chairman of Klondex," said Huet. Schultz, who will take the chairman post in the interim, has been a member of the board since 2012 and is VP at K2 & Associates Investment Management, a significant shareholder of the company.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: KLNDF
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