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New Millennium Iron Corp board fends off dissidents in proxy fight

Montreal-based New Millennium owns vast iron deposits in Canada's Labrador Trough, but its ambitious plans to develop them were thwarted by plunging global iron ore prices.

The current directors of recent Millennium Iron Corp. will keep their jobs after they narrowly fended off a dissident shareholder group inside a proxy fight.

The existing board was backed by 58.23 per cent of shareholder votes cast in a special meeting in Toronto on Tuesday morning, as the dissidents received 41.77 percent, according to a preliminary count. The dissidents, who want New Millennium to slash spending, tried to remove six of the company’s nine directors and replace them with four new nominees.

The key question entering the meeting was which side Tata Steel Ltd., the Indian steel giant, would support. Tata owns 22.6 per cent of recent Millennium shares, and its vote would determine the winner. New Millennium was confident Tata would back management, also it ultimately did.

If Tata’s vote is stripped out, the dissidents got much more votes compared to current board.

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