London — The Australian mining company Mustang Resources on Monday announced that its managing director, Christiaan Jordaan, has resigned due to “personal reasons”.
The resignation follows the hugely disappointing ruby auction that the company held earlier this month. The company had hoped to raise over seven million US dollars, yet only managed to sell 713,456 dollars worth of stones.
The rubies were collected from Mustang's mine in Montepuez, in the northern Mozambican province of Cabo Delgado. Prior to the sale, Mustang had confidently announced record production at its mine and strong results from its artisanal miner development programme (where the company buys gems from local miners).
However, buyers attending the auction in Mauritius expressed disappointment at the poor quality of the stones.
As a result of the auction's flop, shares in the company on the Australian stock exchange plummeted from a high of 18.5 cents in mid-October to 3.7 cents today - an eighty per cent drop.
Despite the poor results from the auction, Mustang “emphasises that it was Mr Jordaan's decision to resign and the directors reluctantly accepted his resignation”.
Mustang's Montepuez Ruby Project consists of four licenses covering 19,300 hectares directly adjacent to the world's largest ruby deposit which is mined by Montepuez Ruby Mining Ltd.