By Tom Winnifrith | Tuesday 14 February 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
For the second day running shares in Mila Resources (MILA) are slipping badly. The reason is simple: the publication of a damning document by myself on Sunday regarding Citation Resources, now in administration, which suggests that Mila director Anthony Eastman may have done some very naughty things indeed.
Worse still, Eastman has refused to co-operate with the Australian administrator of Citation where he stands accused, inter alia, of helping his long term business buddy Pirate Pete Landau half inch A$2 million. Eastman is not acting like an innocent man.
I appreciate that a man is innocent until proven guilty even if he is a long term business associate of Pirate Pete. But Mila is a company that needs to issue paper to execute its strategy as a resources investment company and no-one is going to want its paper with this bombshell hanging over its head. I mix metaphors but you know what I mean.
If the allegations against Eastman are proven - and the evidence appears clear - he is just not a fit and proper person to sit on the board of a listed company. I have spoken to Mila boss George Donne who appears a reasonable chap. But he must surely realise that he has a duty to all shareholders to resolve this issue.
What he should do is allow Eastman to leave the board with immediate effect but to keep any share options he has . He can then go ahead and try to sort out the Citation mess and clear his name. If and when he does that he can return to Mila at once. If he cannot then au revoir becomes goodbye.
George: you have a duty to your shareholders, you must act at once. If you do not then Mila is dead in the water and you alone will be responsible for that.
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