Western Minerals is a WA-based junior explorer in the resource and, more particularly, the gold sector.
With the collapse of the price of gold, the company sought something different to sustain viability.
As Susmit Shah, the affable company secretary, put it: “The catalyst for our change of business was the debilitating environment for gold prices”.
“At that time we still had a strong cash holding and having completely stopped exploration activities we were essentially in a care and maintenance mode,” Mr Shah said.
“Expenses involved in remaining a listed company do not stop at this time. The costs of administration continue to happen.”
On 18 June, the 1,500 shareholders of Western Minerals are expected to vote to change the name of the company to Adult-shop.com and the business will then market Barbarella’s range of “erotic toys, videos, compact discs, lingerie and adult publications” over the Internet.
The deal was consummated in March and involves Adultshop.com buying products from Barbarella’s and undertaking the marketing of the same products to members of the public.
There will be an issue of shares in order to fund and develop the Web-based business.
Mr Shah was at pains to point out that successful Internet-based businesses needed to spend a considerable amount of money to achieve their success.
Once the conversion is complete, Adultshop.com will no doubt move off the ASX’s Mining list.
At the junior explorer end of that list, there are fast becoming very few operators.
The majority of them have left the mining sector to move to technology-based industries. However, this will be the most radical move yet seen. Perhaps it is a portent of things to come.
