Moly Mines says its directors are in discussions with majority shareholder Hanlong Mining regarding the future composition and structure of the board of the gold, copper and molybdenum miner.
In a short statement issued after the close of share market trading, Moly Mines said Hanlong also confirmed that China EXIM Bank had not repossessed its shareholding in the miner, contrary to a media report on Tuesday.
The statement also referred to a report in Tuesday's West Australian newspaper that said Hanlong, with a 54 per cent shareholding, was seeking to remove Moly Mines' independent directors from the board.
The three independent directors - chairman Michael Braham, David Craig, and David Nixon - are understood to be the targets of a spill, which is likely to coincide with the company's annual meeting next month.
The statement comes a day after Africa-focused iron ore hopeful Sundance Resources terminated its $1.3 billion takeover proposal with Hanlong.
In December 2012 Moly Mines conducted a review of its merger and acquisition strategy in consultation with Hanlong.
Hanlong advised the Perth-based miner at the time that it maintained its support for Moly Mine's acquisition strategy and would be in a position to financially support an acquisition or project development from the second half of 2013.