13/10/2009 - 13:29

Walker sues Newmont, new Regis board

13/10/2009 - 13:29

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Former Regis Resources managing director David Walker plans to sue Newmont Mining Corporation for more than $9 million for alleged misleading and deceptive conduct.

Walker sues Newmont, new Regis board

Former Regis Resources managing director David Walker plans to sue Newmont Mining Corporation for more than $9 million for alleged misleading and deceptive conduct.

Mr Walker also plans to sue the new management team at Regis for his sacking in May this year, and the subsequent damage to his reputation.

In a statement of claim filed with the Federal Court last week, Mr Walker alleges that Newmont reneged on an agreement to support Mr Walker's loan to Regis from debt into equity, a necessary condition if Regis was to successfully complete a $30 million capital raising last year.

Mr Walker had loaned the money to Regis after a failed capital raising in 2007.

The debt to equity conversion, which would have cancelled out the bulk of the Mr Walker's debt, needed shareholder approval, with Newmont at the time holding a 21 per cent holding in Regis.

However its claimed that Newmont decided at the last minute not to support the conversion, and subsequently the resolution was withdrawn from the shareholders meeting.

Mr Walker claims he lost $9.5 million from the failed conversion, and could recover more if he is successful in suing former Equigold directors Nick Giorgetta, Mark Clark and Morgan Hart, who were successful in removing Mr Walker and former directors Paul Dowd and Jeff Lucy from Regis earlier this year.

Mr Giorgetta is now chairman of Regis, Mr Clark is managing director and Mr Hart is chief operating officer.

Mr Walker alleges that the Equigold directors and their supporters had failed to properly disclose their Regis shareholding in a timely manner, having notified the ASX of their interest in March despite allegedly holding a sizeable stake in last year.

Further comment from Mr Clark was being sought at time of publishing.

A hearing for the matter is scheduled for November 17.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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