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Boss Power slate wins board election in battle with Beruschi over B claims

by Greg Klein | November 15, 2013

The contest was bitter and the results close but a slate backed by Boss Power TSXV:BPU management won the company’s November 14 election to board of directors. Rival nominees had been presented by Morning Star Resources president Anthony Beruschi. The conflict grew out of a $30-million settlement with the province of British Columbia following B.C.’s sudden ban on uranium and thorium exploration in 2009. To get the cash, Boss must turn over certain exploration claims to the province. Included are the B claims, which are held by Beruschi. The two sides differ widely in their estimation of the claims’ price.

[The new board will] seek to negotiate with Beruschi … and, if needed, re-open negotiations with the province.—Boss Power

Boss offered $1.55 million. Beruschi wanted $4 million. In early October Beruschi offered to let a court decide the claims’ value if Boss directors would resign.

Boss initially refused. But later that month, after Beruschi nominated his own slate, Boss responded with five new nominees of its own and a proposal to expand the board from three to five directors. Denunciations from both sides built a crescendo up to November 14. The outcome seemed uncertain—Beruschi said Morning Star and its affiliates hold about a third of Boss shares.

Boss’ nominees won, but only with 53.95% each. They are:

  • Dev Randhawa, CEO/chairman of Fission

  • Chartered accountant Donald Siemens

  • Geologist Ron Stewart

According to Boss’ October 22 circular, the new board will “seek to negotiate with Beruschi … and, if needed, re-open negotiations with the province.” Because of the delays, the government has threatened to rescind the $30-million out-of-court settlement.

By press time Boss acting CEO Ron Netolitzky hadn’t responded to an interview request. Beruschi was unavailable for comment November 15 but indicated he would speak with the following week.

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