Caerus Mineral Resources PLC on Monday said all of the shares held by former directors, Michael Johnson and Martyn Churchouse, will be gifted back to the company and their warrants will be terminated.

Caerus Mineral Resources, a copper miner in Cyprus, will see 4.9 million shares gifted back to the company for no consideration. This forms part of a settlement agreement to recover value and rebuild shareholder confidence, Caerus said.

Both Johnson and Churchouse hold 10.1 million warrants over shares, which will now be terminated. The termination of the warrants will result in a total of 8.3 million warrants in issue, representing 14% of the issued share capital of the company.

Caerus said it also negotiated a one-off payment, effective in the new year, which will contribute ‘significantly’ towards the value lost by previous management decisions.

The agreement follows an investigation by Caerus into certain actions and commercial decisions made by the previous management. It will allow the company to provide equity value for shareholders, it said.

Caerus added that it intends to dispose of the gifted shares to third-party purchasers to raise additional capital. The returned shares will become non-voting shares.

Once the shares have been gifted back and the termination is complete, Caerus Mineral Resources will have a total of 50.5 million shares carrying one vote per share. The company’s issued share capital, inclusive of the gifted shares, will remain at 61.2 million.

Caerus has initiated a search for an independent director to ensure all shareholders’ interests are protected, with the search is at an advanced stage.

Caerus shares were down 6.9% to 5.12 on Friday afternoon in London.

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