McEWEN MINING INC. (TSE:MUX) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On May 6, 2019, McEwen Mining Inc. (the Company) announced the resignation of Andrew Elinesky as the Companys Senior Vice President and Chief Financial Officer, effective immediately. Also, on May 6, 2019, the Company announced the appointment of Dr. Merushe (Meri) Verli, PhD, CA, CPA, as its Chief Financial Officer. Ms. Verlis start date with the Company will be July 2, 2019.
Ms. Verli, age 57, has extensive experience as a senior financial executive, having held several management roles in the gold mining sector. Ms. Verli currently serves as the Chief Financial Officer of PPX Mining Corp., a corporation organized under the laws of British Columbia, Canada, with securities traded on the Toronto Stock Exchange Venture, a position she has occupied since October 2017. From September 2016 until August 2017, Ms. Verli served as Senior Vice President, Finance and Treasury at Kirkland Lake Gold Ltd., a corporation organized under the laws of Ontario, Canada, with securities traded on the New York Stock Exchange (NYSE), the Toronto Stock Exchange (TSX) and the Australian Securities Exchange. From 2007 until September 2016, Ms. Verli served as Vice President, Finance at Lake Shore Gold Corp., a corporation organized under the laws of Ontario, Canada, with securities formerly traded on the NYSE American and TSX. Ms. Verli is a Chartered Professional Accountant. She holds a PhD in Economic Sciences, a Bachelors Degree in Geology and Engineering and a Bachelors Degree of Economics from the University of Tirana, Albania.
On May 3, 2019, the Company and Ms. Verli finalized the terms and conditions of her employment and memorialized those terms in an offer letter (the Offer Letter). Ms. Verli will be paid a salary of CAD$300,000 per year and is entitled to participate in all employee benefit plans consistent with other senior executives of the Company. Ms. Verli is also entitled to earn a performance bonus in the discretion of the Compensation Committee of the Board of Directors of the Company and based on achievement of certain key performance indicators. The target for this bonus is 60% of Ms. Verlis annual salary.
The Offer Letter provides certain severance benefits and change of control protections. If Ms. Verli is terminated by the Company without cause during her first year of employment, the Company would be obligated to pay Ms. Verli the greater of (i) a lump sum payment equal to 12 months base salary, (with no bonus other than a prorated amount of any bonus granted to her); or (ii) Ms. Verlis minimum entitlement to notice or pay in lieu of notice and statutory severance pay owed to Ms. Verli under the Ontario Employment Standards Act, 2000, as amended (the ESA). If Ms. Verli is terminated by the Company without cause following her first year of employment, the Company would be obligated to pay Ms. Verli the greater of (i) 12 months base salary plus one additional month for each year of service, up to a maximum of 18 total months of base salary, plus 1.5 times the average bonus Ms. Verli received over the prior two years; or (ii) Ms. Verlis minimum entitlement to notice or pay in lieu of notice and statutory severance pay owed to Ms. Verli under the ESA. If either the Company or Ms. Verli terminates her employment within six months of a change in control of the Company, the Company would be obligated to pay her an amount equal to 18 months of salary and target bonus plus benefits. Additionally, upon commencing employment with the Company, Ms. Verli will be granted an option to purchase up to 180,000 shares of the Companys common stock with an exercise price equal to the closing price of the Companys stock on the grant date.
A copy of the Offer Letter is attached to this report as Exhibit 10.1 and the summary of the Offer Letter in this report is expressly qualified by reference to such Exhibit.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is furnished with this report:
10.1 Offer Letter between the Company and Dr. Merushe (Meri) Verli, PhD, CA, CPA dated May 3, 2019.