TORONTO, May 16 (Reuters) - Short seller Muddy Waters

Capital said on Thursday that none of its newly proposed

directors for Canadian miner Mayfair Gold's ( MFGCF ) board will

receive any remuneration, in contrast to what it called the

"inappropriate compensation" earned by the company's existing

directors.

Muddy Waters is seeking to replace Mayfair Gold's ( MFGCF ) current

board and replace its members with Muddy Water executives,

saying the board was delaying the advancement of its key

Fenn-Gib gold project and calling out the company's compensation

structure.

"No Muddy Waters director will be compensated, in contrast

to the present situation where insiders appear to have treated

both equity and cash as Monopoly money," Carson Block, founder

and chief investment officer of Muddy Waters, told Reuters in an

emailed statement.

Block is preparing for a public showdown with the junior

gold miner, as shareholders vote on June 5 proposal to remove

the current board.

Last month, Muddy Waters said its clients and principals had

significant investments in Mayfair Gold ( MFGCF ) and that the company

needs a team that is focused on all stakeholders and operating

under high standards of governance. In March, it said that in

the future the firm could increase or decrease its control or

direction over securities of the company through open market

transactions, private agreements or otherwise.

Mayfair Gold ( MFGCF ) declined to comment.

Mayfair Gold's ( MFGCF ) board in January raised its CEO's annual

compensation from C$357,000 to C$400,000 ($262,210 to $293,794)

effective immediately. At the same time, the annual retainer fee

for board members was increased to between C$30,000 and C$50,000

and the board chair's fee to between C$50,000 and C$75,000. The

company said the compensation was benchmarked to its peer group.

In a letter sent on May 9, Mayfair Gold's ( MFGCF ) board made a last

attempt to persuade shareholders to vote against the proposal,

saying the list of individuals proposed by Muddy Waters lack

experience that could set back the project and lead to the

company's delisting.

In 2021 the short seller launched a similar campaign against

GT Gold. It took a majority position in the company and later

sold it to Newmont Corporation ( NEM ).

($1 = 1.3615 Canadian dollars)