The board of Navan Resources has defended the awarding of share options and consultancy payments to some of its directors.

The issue arose at its annual general meeting in Dublin yesterday when a representative of one company shareholder expressed concern at the level of share options and consultancy payments.

He said they should be restricted considering the weakness of the company's share price over the last year.

Last year Navan Resources paid some of its four non-executive directors £291,000 in consultancy payments, an increase on the previous year of £84,000. This was on top of a total of £41,000 in fees.

Mr Nigel Burgess, representing, Harpendon Limited, one of the first companies to invest in Navan, said he has made contact with several large Navan shareholders who expressed concern with the share option and consultancy payments currently being paid out.

Speaking on behalf of the board, deputy chairman, Mr Conor Crowley, told the a.g.m. he had received a "modest" consultancy payment and said they were for various services needed by the company. He added that he expected the figure for consultancy payments to fall this year.

Mr Burgess claimed some of the non-executive directors have availed of consultancy payments, but have not been prepared to buy any shares in the company. He contended it was unfair that these directors should be so well remunerated, without having to "bear any financial pain".

Mr Crowley said such views will be addressed at the next Navan board meeting, but it would not be in the company's best interests to go into consultancy payments in detail.

When a resolution concerning the ability to award share options to directors was put to the meeting, Mr Burgess said he had been in contact with many of Navan's large shareholders who expressed dissatisfaction with the company's share option scheme.

He said shareholders would like the see the share option scheme made more transparent.

"Our corporate governance is beyond question," said Mr Crowley. He added that the board's discussions with large shareholders did not "produce those noises".

Mr Burgess said at a time when the company is going through "a lot of uncertainty" it would be better if the board looked again at the level of share options it is granting.

The board defended its purchase of the copper-lead-zinc mine at Aguas Tenidas in Spain. Chief executive, Mr Brian Calver, said when a bulk sample is taken in September the company is confident it will show high grade ore which can be mined easily.