Tycoon takes on managing director job28th June 2008, 9:00...

Tycoon takes on managing director job
28th June 2008, 9:00 WST

Michael Kiernan

Mining tycoon Michael Kiernan was appointed managing director of Monarch Gold yesterday.

With the aim of focusing all his attention on the cash-strapped Monarch, Mr Kiernan said he’d stepped down as chairman of the board for Monarch’s biggest shareholder, Territory Resources and deputy chair of copper producer India Resources.

Mr Kiernan said his decision to leave Territory’s board was spurred by the company’s not honouring its agreement to assist Monarch with $4m short-term financial support.

“Unfortunately three of the directors had decided they would not proceed with the funding and that precipitated my move to leave,” Mr Kiernan said.

“My goal now is to ensure Monarch survives. That’s where all my attention is focused now,” he said.

Mr Kiernan was speaking to the Kalgoorlie Miner from Monarch’s Mt Ida operations, which he said was looking very promising.

“This is a beautiful ore body and will probably make about $20m a year,” he said.

Mr Kiernan said if he was unable to source the $4 million from other sources, he’d be forced to call administrators into Monarch.

“Had the board told me two or three weeks ago they wouldn’t go ahead with the funding, we wouldn’t be in this position.”

The ever-optimistic Mr Kiernan said Monarch’s future was still bright, especially with the prospect of acquiring the historically profitable Mt Magnet on the horizon.

“As far as the future goes, we’re a long way down the road towards saving Monarch,” he said.

In a statement to the Australian Securities Exchange, incoming Territory Resources chairman Andrew Simpson thanked Mr Kiernan for his contributions to the company.

“He has played a key part in taking Territory into the ranks of iron ore producer and exporter,” Mr Simpson said.

While Monarch Gold remains in a trading halt, Territory also applied for a trade halt on Wednesday, ahead of an announcement by the company.

It is understood the Territory board is seeking independent advice and prior to receiving the advice. No additional payments would be made to Monarch.