Padbury mining board spill defeated8-September-10 by Kym...

Padbury mining board spill defeated

8-September-10 by Kym Fuhrmann - WA Business News

A push by Denis McInerney and a group of dissident shareholders for a board spill at junior miner Padbury Mining has been defeated and cast doubts over a takeover bid by Fe Limited.

Padbury Mining held a general meeting today, after the shareholders issued a 249E notice in July, in their push to replace Luke Innes and Colin Stirling on Padbury's board.

Mr McInerney and the other shareholders wanted Fe Limited directors Tony Sage, geologist Mark Gwynne and Paul Kelly installed on the company's board.

But today, the resolution to appoint Mr Sage, Mr Gwynne and Mr Kelly was defeated by a four to one ratio.

Mr Sage, Mr Kelly and Mr McInerney did not attend the meeting.

Padbury chairman John Saunders, thanked shareholders for the support shown to the current board.

"The result today has shown that the vast majority of shareholders support the current Board, and do not see a need to change either the current Board team or our current development strategy," said Dr Saunders.

"The failure of all resolutions at the meeting today also triggers a defeating condition of the Fe Limited takeover offer.

"Fe Limited now needs to determine whether to proceed with the bid or let it lapse and should do so in a timely fashion," he said.

Padbury's flagship asset is the Peak Hill iron ore project, about 100km north of Meekatharra, where it is aiming to confirm a major magnetite iron resource of 3-5 billion tonnes.

It hopes to announce an initial resource by the end of the year.