Padbury board dispute spill meeting

The board of Padbury Mining has disputed if dissident shareholders, led by Denis McInerney, have the support of enough shareholders to force a general meeting and board spill.

Mr McInerney along with 50 other shareholders have issued a 249D notice requesting the general meeting to replace Luke Innes and Colin Stirling on Padbury's board.

Mr McInerney recently wrote to shareholders and explained that a group of shareholders had secured the consent of Tony Sage, Geologist Mark Gwynne and Paul Kelly to stand for election to the company's board.

Mr McInerney outlined his concerns about the management of the company including the issue of 714 million unlisted options by Padbury last year.

Padbury shares at around the time of the option issue were trading at 3.4 cents and in May 2010 had fallen to a low of 1.1 cents.

But the board of Padbury has released a statement to the Australian Securities Exchange (ASX) disputing whether the group has met requirement of 5 per cent of shareholders or 100 members required under Corporations Act to issue a 249D notice.

The statement said, "According to the Company's share register some of the claimed holdings referred to in the request were not accurate."

Padbury's flagship asset is the Peak Hill iron ore project, about 100km north of Meekatharra, where it is aiming to confirm a major magnetite iron resource of 3-5 billion tonnes.

It hopes to announce an initial resource by the end of the year.