Gagnon now interim head of Canadian Metals
December 3, 2019
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Canadian Metals Inc. (CME) is moving on from the cancelled FeTiv Metals deal, announcing the appointment of Michel G. Gagnon as Chairman of the Board and CEO on an interim basis.
“On behalf of the board, I would like to thank both (Gerald) M. Panneton and (Patsie) Ms. Ducharme for their contributions to the company and wish them success in their future business ventures,” said Gagnon in a statement.
Following the cancellation of the FeTiv deal, the company has gone through a reorganization of its team and strategy, announcing both resignations of Panneton as chairman and CEO effective immediately, and Ducharme as Chief Financial Officer effective Dec. 31.
Ducharme has offered to support the transition beginning in 2020 as an outside advisor, until a replacement is found.
FeTiV Minerals Inc. is a private exploration company which owns an 80 per cent undivided interest in the Mouchalagane, Silicate Lake, Seignelay, Lac Robot and Baie-Trinité iron projects in Québec, with CME owning the remaining 20 per cent undivided interest.
Background on the cancelled FeTiV deal
In July of this year, the CME approved an option agreement based on continuing the initiated technical due diligence on the Mouchalagane and Silicate Lake properties. In addition, during the summer the iron ore markets were experiencing a supply shortage which had a favourable impact on iron prices.
In October, an amendment to the option agreement was negotiated regarding the payment terms of the initial agreement in an effort to relieve financing pressure and deadlines.
CME expected to benefit from the favourable market window; unfortunately markets have since softened and no longer support the values of the option agreement. As a result, the company elected to terminate the option agreement, as amended, effective immediately.
At that time, CME announced the resignations of company directors Stephane Leblanc and Louis Dionne, with Leblanc continuing on as Vice-President Development.