Sydney Morning Herald Jamie Freed September 17, 2008
THE attempt by the Perth explorer Cape Lambert Iron Ore to pick up a project in Sierra Leone linked to a convicted heroin dealer, Frank Timis, and the rock star Bob Geldof could beblocked by a rival group of entrepreneurs.
A major shareholder, Hong Kong's Power United - which yesterday revealed links to the prospector Mick Shemesian - is agitating for a board spill meant to prevent Cape Lambert buying the Sierra Leone project.
Power United, which owns 11.5per cent of Cape Lambert, has called a meeting, aiming to replace the executive director, Tony Sage - a part-owner of Perth Glory - and his fellow directors.
The list of proposed replacements includes a Melbourne day trader and a victim of Opes Prime, Leo "The Gun" Khouri, who helped with the original listing of Cape Lambert. Mr Khouri was one of the Opes clients who initially sought the aid of the Melbourne underworld figure Mick Gatto to recover his losses.
Another proposed replacement is the prominent Perth lawyer Martin Bennett, who has done legal work for businessmen, including the boss of Fortescue Metals, Andrew "Twiggy" Forrest, and the late corporate raider Robert Holmes a Court. The agitators want shareholders to nominate Mr Bennett as their proxy at the meeting.
Mr Bennett recently presided over another shareholder meeting in Perth - that of its fellow iron ore hopeful Golden West Resources - which ended in a violent fight between some attendees.
Power United's other board nominees include a mining engineer, Tony Roberts, and the finance director of Coal of Africa, Blair Sergeant.
Cape Lambert's former chairman, the respected iron ore industry veteran Ian Burston, who was yesterday honoured at a mining industry breakfast in Sydney, resigned from the company's board last month, following thesale of its namesake project to China Metallurgical for $400million.
Cape Lambert is seeking to use some of the sale proceeds to buy the project in Sierra Leone. But Power United said it disagreed with that strategy, along with Cape Lambert's decision to issue 8.35million options to employees and consultants, despite that resolution having been withdrawn at a recent shareholder meeting.
WHY WOULD CFE BUY A MINORITY INTERETS IN A WEST AFRICAN PLAY WITH NO RESOURCES AND TENURE PROBLEMS- NEED TO CONDERVE THE CASH AND BUY INTO COMPANIES WITH A GOOD RESOURCE OR JOINVENTURE FOR THIS AMOUNT OF CASH- BURSTON WILL COME BACK ONCE SAGE AND POSSIE ARE GONE.
CFE Price at posting:
19.3¢ Sentiment: None Disclosure: Not Held
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