Article in todays The Australian Wednesday May 14 2008 - p31, front page Business section.
Police sift vote from miner’s meeting Kevin Andrusiak Resources
The authorities have again been called into the offices of Perth-based miner Golden West, this time to investigate alleged voting irregularities from last year’s controversial annual general meeting of the company.
It is understood the West Australian fraud squad has scrutinized a number of proxy votes placed before the meeting, on November 29.
The meeting was one of the most bizarre in recent times with security guards called to intervene during heated debate between Golden West directors and people associated with Findlay Securities. Findlay was the corporate backer for Fairstar Resources, which had launched a hostile all-scrip take-over for Golden West but has since tried to distance itself from the takeover.
Central to the current contro-versy was a vote at the meeting to issue new Golden West shares and raise about $26 million to help the company fund exploration for its key asset, the Wiluna West hematite iron ore project.
The vote was past with just a slim majority of just 1.1 million shares, but not before the then major shareholder in Golden West – Falak Holdings – initially voted against the resolution to issue new stock before seeking to have its vote reversed.
It is understood that Golden West itself called for the intervention of authorities after not-ing alleged irregularities for just two of the proxy votes, which accounted for an unknown quantity of shares.
At the time, the votes were taken to the meeting in a sealed box but have since been scruti-nised by the recently appointed Golden West board after three of its former directors resigned en masse in February.
Golden West declined to comment on the matter yesterday. But it is doubtful whether the new security issue could be reversed even if the police were to uncover incidence of fraud.
The latest twist is part of the long-running takeover battle between Fairstar and Golden Wes, which share a number of common shareholders. The Australian Federal Police earlier this year raided the offices of Findlay Securities as part of its investigation of alleged insider trading.
Fairstar has lodged traction in its pursuit of its larger rival but remains the majority shareholder in Golden West despite losing a near 10 per cent stake in the company after it was caught up in the Opes Prime collapse.
Meanwhile, US-based Portman Mining has moved to a 14.9 per cent stake in Golden West after buying shares on-market. That is the maximum number of shares Portman can buy without approval from the Foreign Investment Review Board.
Golden West share gained 1c yesterday to close at $1.72. Fairstar scrip slipped 0.5c to 14c.
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