Far East Gold battles Xingye Gold over board control
- Far East Gold is locked in a control battle with its largest shareholder, Xingye Gold, following a rejected takeover offer.
- Shareholders face voting on competing director removal resolutions at two extraordinary general meetings set for Oct. 21 and Nov. 3.
- Xingye Gold claimed the explorer is low on cash, while Far East Gold stated an independent valuation priced its shares at 38.4 cents each.
Far East Gold (ASX:FEG) is facing a boardroom battle with its major shareholder Xingye Gold after dismissing a 13-cent-a-share takeover bid as an undervalued offer for its Indonesian gold assets.
The takeover offer represented a 34% premium over the company's prior closing price of 9.7 cents but fell below an independent valuation by Lonergan Edwards that placed the fair value at 38.4 cents a share.
"Fundamentally this entire thing is about trying to steal the company as cheap as possible and dirty us up along the way," said Far East Gold CEO Shane Menere.
As of June 30, Far East Gold held $1.9 million in cash on hand after raising and spending $32 million since listing in March 2022.
Xingye Gold increased its holding from 19.99% to 33.8% in July after acquiring shares from Indonesian entrepreneur Wendy Yap.
Following the announcement, the Far East Gold share price was unchanged at $0.10.
Far East Gold is a junior mineral exploration company focused on developing gold and copper projects across Australia and Indonesia, including its Idenburg project.
Xingye Gold initially acquired its 19.99% stake in November 2025 in exchange for a $14.5 million investment in the Australian explorer.
