08:37 AM EDT, 04/04/2024 (MT Newswires) -- Mayfair Gold ( MFGCF ) on Thursday issued a defense of its governance and compensation practices, saying shareholder Muddy Waters Capital made "misleading and inaccurate statements" about the company's compensation and governance practices as it seeks support to replace four directors on the miner's board.

Mayfair said its board and management are not seeking to entrench themselves and its efforts to address Muddy Waters' concerns have been rebuffed. It also said its compensation practices have been supported by outside consultants.

"Contrary to Muddy Waters' assertion that it hoped to resolve issues with the company quickly, it has consistently refused to engage in a constructive dialogue with Mayfair," the company said.

Muddy Waters on Tuesday said it has the backing of more than 50% of Mayfair shareholders as it requisitioned a shareholder meeting to replace four of Mayfair's current directors with a slate of independent replacements.

"Increasingly, the Board's actions appeared to be motivated by fear of oversight. Our patience ran out, and the Chairman's seat needed to be occupied by somebody whom shareholders trusted. The Board has attempted to justify its actions and criticize ours. There is no way to justify how, after a majority of shareholders gave us their support, directors have chosen to lock themselves in the boardroom rather than listen," Muddy Waters said in its April 2 release.

Mayfair said it is reviewing the request to hold a shareholder meeting "and will respond within the timeframe set out in applicable legislation. In the meantime, there is no need for shareholders to take any action".

Mayfair shares closed unchanged at C$2.14 Wednesday on the TSX Venture Exchange.