Moves are afoot to oust a trio of Citigold Corporation (ASX: CTO) directors, including executive chairman Mark Lynch, and to elect Perth entrepreneur Tony Sage and others to the board.

The company has received a notice from DEP Nominees, as a trustee for the Carmen Trust, calling for a general meeting of shareholders.

DEP became a substantial shareholder of Citigold in August after its acquisition of a secured loan facility in June.

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Citigold had received a notice of default under that facility. Following completion of a $4.5 million share placement, the company said $2.0 million of the placement proceeds was applied to repay the facility.

The notice from DEP proposes that a general meeting consider resolutions proposing the election of Mr Sage, Timothy Turner and Edward Jack as directors of the company; and the removal of Mr Lynch, John Foley and Sibasis Acharya as directors.

Citigold said it was reviewing the notice under section 249D of the Corporations Act and accompanying materials with its advisors.

‘Subject to that review, the directors will call and arrange a general meeting within the statutory timeframes prescribed by the Act,’ it said in an update to the ASX.

Citigold’s focus is the high-grade Charters Towers Gold Project. It holds 175sq km of prospective exploration grounds surrounding the Central Mine mineralisation area at Charters Towers.

The company has placed its probable ore reserves at 2,500,000 tonnes at 7.7g/t gold, containing 620,000 ounces of gold. The indicated mineral resource is 3,200,000 tonnes at 7.7g/t gold, containing 780,000 ounces of gold.

The inferred mineral resources are 32 million tonnes at 14g/t gold, containing 14 million ounces of gold (using a cut-off grade of 3g of gold per tonne of mineralised material).

Citigold announced early this month that its 2020 Mineral Resource Report (which outlines the figures above) was under review.