25/07/2008 - 15:21

Portman questions GWR acquisition

25/07/2008 - 15:21

Bookmark

Upgrade your subscription to use this feature.

The squabble between Portman Ltd and Golden West Resources Ltd has turned up a notch as questions arise from a non-refundable $820,000 deposit for an acquisition.

Portman questions GWR acquisition

The squabble between Portman Ltd and Golden West Resources Ltd has turned up a notch as questions arise from a non-refundable $820,000 deposit for an acquisition.

Portman today issued a letter to GWR shareholders in what it said is to clarify the inaccurate, misleading and concerning materials distributed to stakeholders.

Portman said it was concerned about the lack of explanation over the non-refundable deposit to owners relating to the acquisition of the Joyner's Find tenements.

"There is no explanation as to why Golden West has paid a non-refundable deposit of $820,000 to the owners of the Joyner's Find tenements," Portman said.

"This means that even if the shareholders of Golden West do not support the proposed acquisition, $820,000 of shareholders' funds will have flowed out of the company with no asset having been acquired in return. We think that this approach is totally inappropriate in the circumstances."

Portman claims the valuation of the tenements is deficient and has called on GWR to provide further information.

The bickering started when Portman, which owns a 19.9 per cent GWR stake, proposed to replace Golden West chairman Con Markopoulos and director Michael Wilson with persons who had more iron ore experience.

Portman has nominated its managing director Richard Mehan to take a non-executive director role and Paul Piercy as an independent non-executive chairman.

Golden West retaliated claiming Portman wanted to take over the company without paying a premium. Portman has previously said it was not interested in a takeover.

A shareholders meeting has been called for August 29.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options