Nickel 28 Capital Corp., a Canadian mining firm specializing in nickel and cobalt, recently announced the dismissal of its founding members, including CEO Anthony Milewski, following an independent investigation that revealed alleged serious misconduct. The management team, however, refutes these allegations, suggesting they are part of an ongoing power struggle within the company.
“We categorically deny these allegations and assert that they are unfounded and highly misleading. The founding management team believes that these terminations are part of the year-long contest for control of Nickel 28 launched by Ned Collery of Pelham Investments. This contest saw Brett Richards along with Ned Collery join the board of directors of Nickel 28 and work together to take control of the company.” Stated Nickel 28.
The decision to remove Milewski, President Justin Cochrane, and CFO Conor Kearns was made after the board examined the findings of an independent special committee. The investigation suggested that the management team had failed in their duties and demonstrated consistent poor judgment.
In a separate statement, Milewski, Cochrane, and Kearns denied the allegations. Pelham has not yet responded to requests for comment.
This internal conflict at Nickel 28 occurs amidst broader instability in the battery-metal industry, as demand for electric vehicles fluctuates in key markets. Milewski, a seasoned commodities investor, previously owned the world’s largest private cobalt reserve before prices plummeted in 2018. Despite this setback, he established Nickel 28 to continue investing in the battery-metal sector. The company, based in Toronto, holds stakes and royalties in mining projects in Canada, Australia, and Papua New Guinea, with a primary focus on nickel and cobalt mining.
In March 2023, Pelham made an offer to increase its stake in the company, citing concerns about a lack of independent oversight and perceived excessive executive compensation. This led to the appointment of new directors to the board, including Pelham founder Ned Collery and Brett Richards, CEO of Goldshore Resources Inc. Since these appointments, the founders claim that the board has been questioning management decisions.
Upon joining the board, Collery and Richards initiated an investigation, which the founders claim was biased due to potential conflicts of interest. This investigation resulted in the alleged illegal withholding of earned compensation and the controversial terminations. The founders have indicated that they may seek legal remedies if a satisfactory resolution can’t be reached.
The Special Committee was established in early December 2023 to examine historical compensation arrangements, including grants made under the company’s long-term incentive plan. The committee also investigated compliance with company policies, including its insider trading and expense policies. However, the board’s statement did not specify which policies had been breached.
