Energy Resources of Australia Announces Board Member Resignations

Energy Resources of Australia (ASX:ERA) announced that its chairman, Peter McMahon and independent non-executive directors Helen Garnett and David Smith have resigned as directors of the company following announcement that Ranger 3 Deeps project will not proceed to final feasibility study.

As quoted in the press release:

The outgoing directors wrote to ERA on 20 June 2015 explaining that, after taking into account a range of factors that have developed since ERA’s announcement of 11 June 2015, they have decided to resign from the ERA Board.

The outgoing directors said: “Given the differing views on the future of the Ranger 3 Deeps project, it is difficult for ERA to pursue its stated approach without the support of its major shareholder, Rio Tinto.” In tendering their resignations they noted that whilst the ERA Board had decided that the Ranger 3 Deeps project would not proceed to Final Feasibility Study at this time, the Board’s view was that an extension to the Ranger Authority would allow ERA to revisit the Ranger 3 Deeps project’s economics over time.

They also noted that Rio Tinto had subsequently announced that “it does not support any further study or the future development of Ranger 3 Deeps due to the project’s economic challenges.”

Click here to read the full Energy Resources of Australia (ASX:ERA) press release.