GoldStone Resources' (AIM:GRL) shares plunged nearly 40% in early trading following its annual general meeting, where a key director was voted off the board and a proposal to increase share issuance authority failed to secure enough support.
At the AGM, all resolutions passed except for the re-appointment of Angela List as a director, who was rejected by more than 80% of votes, forcing her immediate resignation. The company named Campbell Smyth as interim non-executive chairman.
Adding to uncertainty, GoldStone revealed that former chairman Bill Trew disclosed confidential details about a rejected offer made to the board earlier this year. The company has launched an investigation into the breach.
Operationally, July gold production dipped to around 214 ounces due to low-grade ore being mined. The firm is in talks with potential funding partners and may call another shareholder meeting to revisit share issuance powers.
The stock dropped 0.21p to 0.32p.