re: another press release - re: manipulation , page-2

re: another press release - re: manipulation Business Spectator

Call for Padbury directors to be ousted

Published 9:01 PM, 11 Aug 2010

AAP

Dissatisfied shareholders of Padbury Mining Ltd want two of four directors removed from the iron ore explorer's board, citing a lack of experience and the company's poor sharemarket performance.

But Padbury Mining rejects the claims, saying it's firmly focused on developing its Peak Hill project in Western Australia's midwest region and that its share price has been manipulated by unscrupulous parties.

A group of shareholders with a collective stake of more than five per cent in Padbury Mining on Wednesday called for the appointment of three new directors to expand the board by one, which would include Perth mining identity Tony Sage.

The shareholders have written to other investors, asking them to vote in favour of removing non-executive directors Luke Innes and Colin Stirling at a forthcoming meeting.

"Apart from their directorships of Padbury Mining, neither Mr Innes nor Mr Stirling have any recent experience as directors of listed companies, which in our view is important for small cap companies in the resource industry," the dissatisfied shareholders said.

They have proposed the appointments of Mr Sage, who is best known for his role as executive chairman of Cape Lambert Resources Ltd, and Mark Gwynne and Paul Kelly, who are both directors of Fe Ltd.

"We believe that the proposed new directors can take Padbury Mining's iron ore project forward," investors were told.

Padbury Mining managing director Gary Stokes said the company aimed to bring the iron ore resource at Peak Hill into compliance with Australia's mineral reporting code, JORC, by December.

"This will take us to the next level," he told AAP.

Mr Stokes said the meeting request was an unnecessary and inconvenient distraction.

"I'd rather spend our money paying for drilling than paying for lawyers, he said.

Mr Stokes said Padbury Mining had alerted the Australian Securities and Investments Commission to suspected shorting of the company's stock.