01/11/2007 - 11:50

Mystery deepens over crucial ConsMin stake

01/11/2007 - 11:50

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Consolidated Minerals Ltd bidder Pallingurst Resources Ltd has maintained the heat on rival bidder Palmary Enterprises by providing "prima facie evidence" that Palmary president Gennadiy Bogolyubov and Igor Kolomoisky are business associates.

Consolidated Minerals Ltd bidder Pallingurst Resources Ltd has maintained the heat on rival bidder Palmary Enterprises by providing "prima facie evidence" that Palmary president Gennadiy Bogolyubov and Igor Kolomoisky are business associates.

Its statement comes as ConsMin said that it was still unable to identify the ultimate beneficial owners of a mystery 16.3 per cent shareholding, nor has it been able to determine whether Palmary has any link to the owners of those shares.

It has been reported that Mr Kolomoisky is associated with two entities, Torbock Holdings and Wadless Holdings, which have a combined 8.1 per cent stake in ConsMin.

If that is correct, and if Messrs Bogolyubov and Kolomoisky are business associates, then Palmary may have an interest in more than its declared 14.3 per cent shareholding.

Pallinghurst said in a statement that Messrs Bogolyubov and Kolomoisky jointly attended meetings in Switzerland earlier this year.

"During the meeting, it was clear to Pallinghurst that Gennadiy Bogolyubov and Igor Kolomoisky were acting jointly on matters associated with .... the larger Privat Group," the statement said.

"Pallinghurst believes that this constitutes prima facie evidence that they act as associates in respect of Palmary's offer for ConsMin."

The Ukraine-based Privat is associated with Belize-registered Palmary, though the precise links have never been fully explained.

Meanwhile, the Takeovers Panel has ordered that Pallinghurst must cancel the 'top up' notes offered as part consideration under its takeover offer.

The Panel also ruled that shareholders who accepted Pallingurst's offer after 12 October have a right to withdraw.

It has stayed the operation of its order pending an appeal by Pallinghurst.

 

A ConsMin statement is pasted below:

Consolidated Minerals Limited (ASX: CSM, AIM: CNM, FSE: CMN) refers to its announcement dated 30 October 2007 in which CSM updated the market on the status of its investigations (and those of ASIC) in relation to the identity (or identities) of the ultimate beneficial owner(s) of the 17.7% interest in CSM. CSM also notes the announcement earlier today from Pallinghurst relating to this matter.

Since its 30 October announcement, CSM has been in discussions with ASIC and has made further enquiries of both Palmary Enterprises and the Other Holders (as identified in CSM's 30 October announcement). These enquiries have primarily been directed at ascertaining the identity of the ultimate beneficial holders of the 17.7% interest (other than the 2,760,300 shares comprising part of that interest that are beneficially owned by Palmary Enterprises).

CSM's enquiries have also sought to ascertain whether there is any relationship between the Other Holders (or parties controlling the Other Holders) and Palmary Enterprises. These enquiries have included investigations in respect of whether or not there is any association between Mr Gennadiy Bogolyubov and the Other Holders (and/or parties with direct or indirect interests in the Other Holders) for the purposes of Australian law.

To date these enquiries have not disclosed sufficient information for CSM to determine the ultimate beneficial owners of the 17.7% interest (other than Palmary's interest), to determine whether or not there is any association between the Other Holders and Palmary Enterprises or whether or not there has been conduct by any party to warrant CSM taking action (whether in the Takeovers Panel or otherwise). CSM's enquiries are ongoing. CSM does however reserve its right to take any action it considers appropriate in the interests of its shareholders, subject to the outcome of its enquiries.

CSM will continue to keep the market informed as and when it receives further information in relation to this matter.
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