Crystal Peak Minerals Inc. has recently announced that John Mansanti, Crystal Peak’s President and CEO, has tendered his resignation to the company to pursue other business interests and will also be resigning from the Board of Directors. His resignation will be effective 31 August 2020 and he will no longer stand for re-election at the company’s annual shareholders meeting to be held on 3 September 2020.
In light of Mansanti’s imminent departure, the Board has appointed Dean Pekeski, the current Vice President of Project Development, as the Interim President and CEO to take effect on 31 August 2020. Pekeski has been with the company since 2015 and has been the key individual responsible for development activities on the Sevier Playa project, Utah, USA.
Mansanti has agreed to a consulting position to act as a Senior Advisor to the Board so that the company may continue to draw on his experience as it moves forward with its Sevier Playa project.
The company has also provided an update on operations and funding initiatives. As noted in a previous release, the COVID-19 pandemic has had a significant impact on the company’s ability to raise additional financing for the Sevier Playa project. Crystal Peak has used all means necessary to preserve cash in these uncertain times, including reductions in work force, and has eliminated all discretionary spending. Despite these measures, the company’s cash balance could drop below the US$500 000 minimum cash balance covenant included in its outstanding Convertible Note agreement with EMR Capital Investment (No. 5B) Pte. Ltd., an affiliate of EMR Capital Resources Fund 1, LP (EMR).
In addition, the company is working with a financial advisor, which it had previously engaged, to advise it in pursuing any and all financing alternatives, up to and including the sale of the company or its assets.
The company is also working with EMR Capital regarding potential funding solutions and will provide updates as discussions progress, but to date EMR has not indicated a willingness to provide further funding or concessions to the company. A breach of the Convertible Note (e.g. the minimum cash balance) could result in EMR Capital foreclosing on its security pursuant to the Convertible Note.
Read the article online at: https://www.worldfertilizer.com/special-reports/21082020/crystal-peak-minerals-provides-management-update/