Iamgold makes peace with activist, adds 3 directors to board
BNN Bloomberg
An activist investor is getting its way at Iamgold Corp.
An activist investor is getting its way at Iamgold Corp.
The Toronto-based miner announced Monday morning that it reached an agreement with RCF Management LLC to add three new directors to its board of directors.
Under the pact, Maryse Bélanger will join the board as chair, while David Smith and Ian Ashby were appointed as directors. All three have experience sitting on boards of directors in the mining industry.
RCF, which has a 5.2 per cent stake in Iamgold, put the company on notice at the start of this month that it would nominate Bélanger, Smith and Lawrence Haber for election to the board. RCF argued Iamgold's assets had been mismanaged for years and called for an urgent turnaround strategy.
The truce marks an abrupt reversal after Iamgold blasted RCF on Feb. 2 for what the company called "an alarming disregard for good governance" in its demands. At the time, Iamgold claimed RCF wanted to install Bélanger as chair without first meeting the board’s other directors. It also indicated, however, that she and Smith were acceptable nominees for the board, while Haber was not deemed fit to sit on its board.
On Monday, Iamgold said three of its directors -- Richard Hard, Ronald Gagel and Tim Snider -- will depart the board to make room for the new appointees.
