Nickel 28 Capital Ousts CEO Anthony Milewski and President Justin Cochrane in Leadership Purge Over Misconduct

In a dramatic overhaul at Nickel 28 Capital Corp., the board has ousted three top executives following a rigorous internal investigation. 

The shake-up at the nickel-cobalt producer saw CEO Anthony Milewski, President Justin Cochrane, and CFO Conor Kearns dismissed for serious breaches of conduct and policy non-compliance, sending shockwaves through the corporate ranks.

Nickel 28 shares soared 18% on the news of the termination in early trading on May 6th.

• Cochrane and Milewski are founders of a research and consulting group
• Milewski was a founding member of Carbon Streaming Corp alongside Cochrane, who became the CEO in late 2020
• Kearns is the current CFO of Carbon Streaming Corp under CEO Justin Cocrhane
• Maurice Swan, Board Member of Nickel 28, is also the Chairman of Carbon Streaming Corp.

The firings, effective after the close of business on May 3, 2024, were announced following findings from an independent special committee formed in early December 2023. This committee was tasked with examining the executives’ adherence to insider-trading, expense policies, and the code of business conduct and ethics. 

Their investigation revealed misconduct including breaches of duty, poor judgment, and various violations of Nickel 28’s internal policies. None of the company’s findings have been proven in court.

Dismissed Executives Justin Cochrane, Conor Kearns and Board Member Maurice Swan’s ties to Carbon Streaming Corp.

Amid the upheavals at Nickel 28, the connections between ousted executives and other industry entities have come under scrutiny. 

Notably, Conor Kearns, the former CFO, along with Justin Cochrane, the ousted president, and Nickel 28 board member Maurice Swan, are all known to have ties with Carbon Streaming Corp., a firm specializing in carbon credits and streams. 

This involvement raises questions about potential conflicts of interest and the integrity of their professional judgments in their roles at Nickel 28, and now, potentially Carbon Streaming. 

The overlap in executive roles between different corporations is a common practice but invites a closer examination of governance and ethical standards, especially in light of the recent findings of misconduct at Nickel 28. Maurice Swan is Director of Nickel 28, and current Chairman of Carbon Streaming. Swan was the former Chair of the Compensation Committee at Carbon Streaming until he stepped down late in 2023.

Such relationships are particularly relevant as they could influence decision-making processes and strategic directions not only at Nickel 28 but across the broader business spectrum where these individuals hold influence.

• Carbon Streaming has come under fire recently from activist shareholder groups for executive compensation and G&A spending. 
• The company promoted a new CEO in June 2023, before he resigned after only 3 weeks on the job – and Cochrane retook the position.

Investigation and Findings

The special committee’s investigation at Nickel 28 delved into historical compensation arrangements and the compliance of these senior figures with the company’s insider-trading, expense policy, and code of business conduct and ethics. It also examined potential conflicts of interest and related party transactions involving company insiders and key employees.

Their thorough review culminated in an unanimous recommendation to the board to terminate the implicated executives for cause. The board, accepting these recommendations, has also reserved all rights to initiate legal proceedings to recover losses and gains obtained through the executives’ alleged misconduct. However, they noted that these findings are not expected to materially impact the company’s prior financial statements.

Immediate and Future Leadership Changes

In response to the leadership vacuum, the board acted swiftly to appoint Christopher S. Wallace as the interim CEO. Wallace, a current board member known for his extensive experience in leadership and finance within the critical-minerals industry, is expected to steer the company through this turbulent period.

Additionally, Brett Richards, another board member with over 37 years in the mining and metals industry, will provide consultancy services to assist with the transition.

Martin Vydra, Executive Vice-President of Strategy, and Craig Lennon, Head of Asia-Pacific, will continue in their roles, ensuring operational continuity.

Company Outlook and Strategic Vision

Despite these significant upper-management upheavals, Nickel 28 reassures stakeholders that its core strategic vision and objectives remain steadfast. The board and the continuing leadership team are committed to upholding the highest standards of integrity, transparency, and accountability in all operations.

Nickel 28 Capital, known for its 8.56-percent joint venture interest in the producing, long-life, and world-class Ramu nickel-cobalt operation located in Papua New Guinea, continues to be a pivotal player in the nickel and cobalt markets. These metals are critical for the burgeoning electric vehicle sector, underscoring the company’s strategic importance.

In addition to Ramu, Nickel 28 manages a portfolio of 10 nickel and cobalt royalties on development, prefeasibility, and exploration projects across Canada, Australia, and Papua New Guinea.

Implications for Stakeholders

The abrupt leadership changes and the circumstances leading to them could stir investor concerns regarding governance and oversight within Nickel 28. However, the board’s proactive stance in addressing these issues and setting a course for robust oversight and transparent management practices might help in stabilizing trust among investors and partners.

As the company navigates through these changes, the outcomes of any legal actions and future disclosures related to the termination of the senior executives will be closely watched by shareholders and industry analysts alike. 

The full details of the impact of these terminations will be disclosed in the company’s future continuous disclosure filings, including its 2025 management information circular, ensuring that stakeholders are kept fully informed.

The coming months will be critical for Nickel 28 as it seeks to maintain its operational integrity and market position amidst these internal challenges. With a renewed leadership team at the helm, the company aims to navigate through these turbulent waters, reaffirming its commitment to best practices and shareholder value.