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by Mike Caswell

The battle between Rapier Gold Inc. and a dissident group headed by Delbrook Capital Advisors Inc. has landed in the Supreme Court of British Columbia. Delbrook has asked the court to appoint an independent chair for the company's annual general meeting, claiming that the meeting will not be conducted in a fair manner. Rapier's board has taken steps to entrench itself, with those steps including a threat to invalidate dissident proxies, Delbrook claims.

The court filing comes amidst an effort that Delbrook began in 2016 to replace Rapier's board. Delbrook's complaints revolved around Rapier's rejection of two takeover offers that valued the company at a substantial premium. Delbrook also said that Rapier nearly lost a substantial portion of the company's main project, the Pen gold property in Ontario.

The request for an independent chair is contained in a petition that Delbrook filed at the Vancouver courthouse on Monday, March 21. In the petition, Delbrook says that it began the formal process to replace Rapier's board on Feb. 6, 2017, when it nominated four individuals for election at the company's AGM. Delbrook claims to have support from shareholders representing 40 per cent of the company's outstanding total. This figure includes Delbrook itself, which is Rapier's largest single shareholder. According to the petition, it holds 12.5 million shares, or 17 per cent of the total outstanding. (Delbrook also points out that three of the company's four directors hold a combined total of just 2.48 per cent.)

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