03:01 PM EDT, 10/07/2019 (MT Newswires) -- Torex Gold Resources (TXG.TO) was down 3% after the Marlin Sams Fund, which holds a 4.1% stake in the gold producer, released a public letter asking the company's board to address what it sees as potential conflicts of interest arising from competing board appointments.

The fund said it is hearing rumors that Torex was interested in acquiring TMAC Resources (TMR.TO), which shares a chairman and some directors with Torex.

"We fear that the coziness of these relationships not only makes suggestions of a possible TMAC deal believable but also, and more important, calls into question the ability of the current Board to evaluate any important strategic matter," the fund said in a letter. " ... Addressing these independence and alignment issues should be the board's highest priority. We respectfully but sincerely call upon the Board to do so with urgency."

Torex has not yet responded to the letter.

Torex shares were last seen down C$0.55 to C$17.50 on the Toronto Stock Exchange.

Price: 17.54, Change: -0.51, Percent Change: -2.83