Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
On April 20, 2020, Trilogy Metals Inc. announced that it has appointed Tony
Giardini as President and Chief Executive Officer effective June 1, 2020. Mr.
Giardini has been a director of the Company since January 2012 and will continue
to be an executive director.
Mr. James (Jim) Gowans will continue in his role as Interim President and Chief
Executive Officer until May 31, 2020. Mr. Gowans also remains in his role as a
director of the Company and he will continue as a member of the Board of Ambler
Metals LLC, overseeing the Company's interests in its joint venture with South32
Limited.
Mr. Giardini, 60, was President of Ivanhoe Mines Ltd., a base metals development
and exploration company, from May 2019 to March 2020 and was Executive Vice
President and Chief Financial Officer of Kinross Gold Corporation, a senior gold
producer, from December 2012 to April 2019. He has extensive experience with
joint ventures and large capital projects, including Ivanhoe's three large
development assets, Platreef, Kipushi and Kamoa-Kakula. He was Chief Financial
Officer of Ivanhoe Mines Ltd. from May 2006 to April 2012. Prior to joining
Ivanhoe Mines Ltd., Mr. Giardini spent more than 10 years with Placer Dome Inc.
as Vice President and Treasurer. Mr. Giardini is a Chartered Professional
Accountant and a Certified Public Accountant and spent 12 years with accounting
firm KPMG prior to joining Placer Dome Inc.
On April 20, 2020, Mr. Giardini and the Company entered into an employment
agreement (the "Employment Agreement") appointing Mr. Giardini as President and
Chief Executive Officer effective June 1, 2020. The term of the Employment
Agreement continues until terminated pursuant to the terms of the Employment
Agreement. For the period commencing on October 1, 2020, the Employment
Agreement provides for an initial annual salary of Cad$500,000. For the period
of June 1, 2020 to September 30, 2020, in lieu of salary, the Employment
Agreement provides that Mr. Giardini shall receive a stock option grant of
170,000 options vesting on September 30, 2020 as full compensation for the
services provided by the Executive during this period. In addition to the stock
option grant that serves as compensation in lieu of salary, Mr. Giardini will
also will receive an initial grant of 1,600,000 options, which will vest 1/3 on
the grant date, and an additional 1/3 on the first and second anniversaries of
the grant date. The stock options will be granted the later of: (i) June 1,
2020; or (ii) in the event the Company is in black-out on June 1, 2020, the date
that is two-business days following the end of the black-out period, in
accordance with the terms of the Company's Equity Incentive Plan. All stock
options are subject to, and will be made in accordance with, the guidelines of
the Toronto Stock Exchange and the Company's Equity Incentive Plan. Any further
stock options grants shall be at the discretion of the Board.
Mr. Giardini shall be entitled to participate in the Company's annual incentive
bonus plan. For 2020, Mr. Giardini's annual incentive bonus shall be 100% of his
annual salary based on objectives set by the Board, pro-rated for the period of
June 1 to November 30, 2020. The assessment of his achievement of these
objectives and the targets and objectives for subsequent years shall be
determined at the discretion of the Board.
Subject to certain conditions, if within two years of the termination of the
Employment Agreement Mr. Giardini acquires any present or future interest in any
mining claims or properties or mineral interests within 10 kilometers of the
external boundaries of any mineral property held by the Company during the time
Mr. Giardini was employed by the Company, the Company has the right to acquire
such interest in exchange for reimbursement of his direct and indirect
acquisition costs. The Employment Agreement also provides for medical benefits,
reimbursement of expenses, directors' and officers' liability insurance
appropriate to the nature of his responsibilities under the Employment
Agreement, and five weeks of vacation each year, and contains provisions
relating to confidentiality and non-solicitation.
If Mr. Giardini's employment is terminated (i) by the Company without cause, or
(ii) by Mr. Giardini if the Company materially breaches the Employment
Agreement, the Employment Agreement provides that the Company is required to pay
to Mr. Giardini an amount equal to eighteen months of his current annual salary
plus 1.5 times his annual incentive earned in the previous year pursuant to the
Company's annual incentive bonus program.
There are no arrangements or understandings between Mr. Giardini and any other
persons, pursuant to which he was appointed President and Chief Executive
Officer, no family relationships among any of the Company's directors or
executive officers and Mr. Giardini and he has no direct or indirect material
interest in any transaction required to be disclosed pursuant to Item 404(a) of
Regulation S-K.
The foregoing description of Mr. Giardini's compensation for his service as
President and Chief Executive Officer does not purport to be complete and is
qualified in its entirety by reference to the Employment Agreement entered into
with Mr. Giardini which is filed as Exhibit 10.1 hereto and is incorporated
herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number Description
99.1 Press release dated April 20, 2020
10.1 Employment Agreement between Trilogy Metals Inc. and Tony
Giardini dated April 20, 2020
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