TORONTO -- Base metals miner Ivernia Inc. (TSX:IVW) has signed a management services agreement with its majority shareholder as part of a restructuring move that will also see current president and CEO Alan De'ath take early retirement.
Under the agreement with Enirgi Group Corp., which holds 58.9 per cent of the Toronto-based Ivernia's stock, Enirgi president and CEO Wayne Richardson will take over as head of Ivernia effective Dec. 28.
Richardson joined the Ivernia board in March after having been on the board of Ivernia's wholly-owned subsidiary, Rosslyn Hill Mining Pty Ltd., since October 2010. He has been chairman of Rosslyn Hill since January.
The companies said Richardson's will be focused on streamlining management and returning Ivernia's Paroo Station Mine in Western Australia to sustainable operations.
The company has said it will need some $20 million in funding to restart operations, with the restart currently scheduled for the second quarter of 2013.
"The team has advanced discussions with potential lenders to provide a debt funding solution that supports the objective of minimizing equity dilution," Enirgi said in a release.
Richardson said the streamlining of the company's management teams and operations "is expected to deliver cost savings while providing improved access to skills and systems."
"I have been working closely with the CFO to advance the debt funding solutions and I remain committed to the objective I set out at the last annual general meeting -- namely re-establishing value for all of Ivernia's shareholders," he said.
Under the management services agreement, Enirgi Group will be responsible for providing general management and executive services for Ivernia, including strategic and business planning functions, accounting, treasury and other day-to-day matters on a cost-only basis.
Ivernia retains full ownership of the mine and the arrangement will have no impact on Ivernia's status as a reporting issuer or its TSX listing, Ivernia said.
