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New Millennium Iron Corp. is involved in one of the messiest proxy fights the junior mining sector has witnessed in a while. A dissident group wants the organization to “dramatically” cut expenses to preserve capital, including compensation. It’s looking to seize control over the board.
If the two sides fail to reach funds, chief executive Robert Patzelt said he is confident the incumbent board will prevail in the company’s annual meeting next week.
“I’m confident the right result will ultimately prevail,” he said in an interview.
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He also said he retains a great working relationship with Indian steel giant Tata Steel Ltd., which owns 26.2 percent of recent Millennium stock.
New Millennium is one several junior miners with projects within the Labrador Trough that are suffering because of plummeting iron ore prices. While Patzelt agrees with the dissidents the company must be prudent using its capital in this bear market, he thinks it’s a mistake to halt spending as far as his opponents want.
“You lose connections with your stakeholders. All that momentum sheds,” he said.
He still hopes the 2 sides can settle their differences before the annual meeting.
