AN American hedge fund has launched a ferocious attack on the chairman of African Platinum (Afplats), the AIM-listed mining company, sparking an international row.

North Sands, based in Connecticut, has in the past two weeks built up a 10% stake in Afplats and then, without prior word to the company, called an emergency meeting to remove Charles Hansard, its chairman.

In a statement, Thomas McAuley, head of North Sands, said: “In our view, Mr Hansard does not have the industry credentials and relevant experience to maximise shareholder value.”

Another investor said: “Some of the shareholders think the chairman is arrogant. They believe he has over-promoted the stock and have lost confidence in him.”

Afplats, which owns the Leeuwkop platinum project in South Africa, used to be chaired by Phil Edmonds, the former Test cricketer turned commodities entrepreneur.

Hansard is credited with bringing in the broker JP Morgan Cazenove, which has lent the company valuable credibility. But in the past three months the shares have fallen 20% to 33p, valuing Afplats at £151m.

The rebel investors are thought to have lined up as successor Robert Still, a veteran director of mining companies in Africa, including Great Basin Gold, Pan African Resources and Zimbabwe Platinum.

Previously, Hansard was appointed to the board of US-listed Apex Silver by its biggest shareholders, veteran hedge-fund managers George Soros and Lewis Bacon of Moore Capital. Hansard is still on the board of Bacon’s flagship fund, Moore Global.

The audacious move by North Sands has shocked Afplats and caused consternation among some of its other shareholders. Thomas Kaplan, whose family owns nearly 12% of Afplats, told The Sunday Times: “If you are disgruntled with the management, you express this properly through the right channels first.

“This attack by North Sands has come without warning and is inelegant, unprofessional and underhand. Hansard is a fine chairman whose work has turned the company round.

“North Sands’s behaviour is outrageous, and if they want to sell their shares, I will buy them all tomorrow.”

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