The founding shareholders of West Perth-based vanadium company Precious Metals Australia Ltd, Roderick Smith and the Earl of Warwick, have been approached about the sale of their 18 per cent stake.
While a company announcement did not confirm the source of the interest, speculation does exist of a takeover attempt by PMA chairman Michael Kiernan's Territory Resources Ltd.
In an announcement to shareholders, Mr Kiernan said Mr Smith and the Earl of Warwick had indicated they would consider a sale provided it was in the interests of shareholders.
The full text of a company announcement is pasted below
Precious Metals Australia (ASX:PMA), developer of the high grade, low cost Windimurra vanadium project in WA's Mid West region, advises that founding shareholders and non-executive directors, Roderick Smith and the Earl of Warwick, have been approached about the potential sale of their stake in the company.
PMA currently has on issue 102 million shares, with Mr Smith and the Earl of Warwick holding approximately 18 million shares or 18% of PMA stock.
PMA Chairman Michael Kiernan said discussions about the potential sale followed a change in the Board and management structure of the organisation, as it moved toward production at Windimurra.
"In response to ongoing market speculation, the Board of PMA advises that Roderick and the Earl of Warwick have been approached by a number of parties regarding a potential sale of their stake," Mr Kiernan said.
"Both parties have indicated to the Board that they would consider such a sale provided it was in the interests of PMA shareholders," Mr Kiernan said.
PMA will advise the market when an outcome on these discussion is reached.
