30/06/2008 - 13:50

Portman calls for GWR directors to leave

30/06/2008 - 13:50

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Portman Ltd is calling for the removal of two Golden West Resources' executives following the completion of its planned 19.9 per cent share acquisition.

Portman calls for GWR directors to leave

Portman Ltd is calling for the removal of two Golden West Resources' executives following the completion of its planned 19.9 per cent share acquisition.

Portman, which is 80 per cent controlled by US mining company Cleveland Cliffs, today advised the stock market that it had completed the purchase of 2.6 million additional shares at over $5.1 million.

In addition, the iron ore miner requested that GWR call a shareholders meeting at which it will put resolutions for the nomination of two board seats at the expense of current GWR chairman Con Markopoulos and executive director Michael Wilson.

It has proposed the election of Paul Piercy as independent non-executive chairman and Richard Mehan as non-executive director, which if successful will mean that GWR's board will consist of roles of a non-executive capacity.

GWR currently has four board members.

Mr Mehan is managing director of Portman and is also chief executive of Cleveland Cliffs Asia Pacific. Mr Piercy has held various senior management positions in Rio Tinto's iron division.

The meeting request follows Portman's announcement earlier this month that it would not make a takeover bid for GWR. The miner today reiterated those intentions, saying its sole aim was to bring appropriate iron ore credentials to the GWR board.

"The spirit of requesting the General Meeting is simply to allow all Golden West shareholders the opportunity to vote on increasing the iron ore expertise on the Board," Mr Mehan said.

"Given its substantial shareholding, Portman is seeking to achieve an appropriate level of Board representation."

 

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