anz portman connection, page-4

Article in today's The Australian

Portman Mining warms to Golden West
Kevin Andrusiak | May 30, 2008

PORTMAN Mining is believed to have applied to the Foreign Investment Review Board to build a 30 per cent stake in Golden West Resources as it looks to shore up its iron ore assets in Western Australia.

According to industry sources, Portman -- which has denied speculation that it wants to make a play for the explorer -- is contemplating increasing its stake in Golden West through a transaction involving majority shareholder Fairstar Resources.

Fairstar itself has a long-running, all-scrip takeover bid for Golden West, which has seen it build a 24.3 per cent stake in the company.

Golden West's key asset is the Wiluna West iron ore project, with its interim resource of 86.3 million tonnes grading 60.1 per cent iron.

Fairstar, Golden West and interests associated with the pair have come under intense scrutiny from authorities and regulators for conduct both before and during the bid process.

It is also understood that authorities are investigating alleged irregularities in shareholder proxy votes recorded at a controversial Golden West extraordinary general meeting last year to issue new capital.

Fairstar's 7-for-1 bid, which has been extended numerous times, is due to expire on June 11.

Fairstar lost about a third of its stake in Golden West when it was also caught up in the Opes Prime brokerage disaster.

It is not clear how Portman plans to get control of Fairstar's holding in Golden West, but sources said Portman might be looking at acquiring a majority shareholding in Fairstar as well.

Golden West shares gained 13c to $1.93 yesterday in weak trading. Fairstar was steady at 15c.

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ANZ - ? - Portman connection continues.