Greystar Resources (TSX: GSL) is cleaning house following its failure to advance its Angostura project. In a move that many think long overdue, the company’s major shareholders have brought in local political heavyweights to help move its project ahead in what is now a political game for the company. In doing so it has shed the lingering vestiges of it being a junior exploration company, a naïve condition that proved insufficient to grapple with the politics of mine development in Colombia. As a result of this, executive vice president Frederick Felder – who was instrumental in driving ahead the exploration programme that discovered a 11.5 Moz Au project - has retired and Steve Kesler has been replaced as CEO.
So out with the old and in with the politicos to the board in the shape of Juan Esteban Orduz and Rafael Nieto Loaiza. Former Legal Vice-President of the Cemex Group in Colombia, Orduz was Minister Plenipotentiary-Deputy Chief of Mission of the Colombian Embassy in Washington who was instrumental in the creation of Plan Colombia, which saw the US government donate billions in military aid to Colombia to underpin the Democratic Security Policy (DSP) of former President Alvaro Uribe. The DSP reasserted state control over the country and so paved the way for foreign exploration and mining companies to be able return to Colombia. Former Colombian Vice Minister of Justice Rafael Nieto Loaiza will become President. In addition, incumbent directors will not stand for re-election and will be replaced by nominees of major shareholder Amber Capital.