June 2, 2014 / 3:03 PM / 5 years ago

Major shareholder pushes for board shake-up at Timmins Gold

TORONTO (Reuters) - A major shareholder of Timmins Gold Corp, which owns the San Francisco gold mine in Mexico, said on Monday it planned to nominate six candidates for the company’s eight-member board.

Asset manager Sentry Investments, which owns about 17 percent of Timmins, said the company’s assets had been mismanaged and the board was not sufficiently independent.

Shares of Timmins jumped 5.8 percent to C$1.46 in morning trading on the Toronto Stock Exchange.

Timmins said in a release that it was considering the views of its shareholders and was confident it can resolve the issue. It said it was applying to postpone its annual shareholders meeting to Sept. 23.

The meeting had been set for July 17, but Timmins sent notice on May 23 that it had been canceled.

Sentry is the company’s largest shareholder, according to Thomson Reuters data.

In the first quarter, Timmins’ earnings dropped to $8.1 million from $14.3 million a year earlier. A decline in gold prices offset a 22 percent jump in production.

Sentry’s proposed nominees include Tony Hawkshaw, former chief financial officer of Rio Alto Mining Ltd and Pan American Silver Corp, and Oliver Lennox-King, non-executive chairman of explorer Roxgold Inc.

Sentry also plans to nominate Richard Hall, who was chairman or chief executive officer of several mining companies, including Premier Gold Mines Ltd, and geologist Marc Prefontaine, former CEO of Grayd Resources Corp, which was acquired by Agnico Eagle Mines Ltd.

Rounding out the list are mining engineer Troy Fierro, who was chief operating officer of Fronteer Gold Inc, which was acquired by Newmont Mining Corp, and geologist Tony Harwood, who was vice president at Placer Dome and is now CEO of Montero Mining & Exploration Ltd.

Reporting by Allison Martell and Euan Rocha; Editing by Jeffrey Benkoe and Lisa Von Ahn

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