poseidon

Nearly 40 years after one of Australia’s biggest share price runs, the Poseidon name could soon return to the stock exchange trading boards if billionaire entrepreneur Andrew Forrest gets his way.

Niagara Mining, which recently appointed Mr Forrest as chairman, is giving serious consideration to a name change to Poseidon, which is synonymous with the nickel boom of the 1970s.

Niagara reserved the names Poseidon Nickel Mines and Poseidon Mines more than two years ago. The explorer also has a strong claim on the name through its control of the mothballed Windarra mine, near Laverton, which underpinned the original Poseidon.

Niagara chairman Doug Daws said that, despite its decision to reserve the Poseidon name, the group had not considered a name change until Mr Forrest came on board earlier this month.

“Andrew has a different vision to us and he has made it clear that it is some thing that he wishes to give consideration to,” Mr Daws said.

“I think it is a sensational name, a name that is known around the world and is synonymous with the great nickel boom we had in Australia. Niagara is a good name but Poseidon is potentially a much better name.”

Poseidon prospector Ken Shirley discovered nickel about 28km from Laverton near Mt Windarra in 1969.

The find triggered a massive run on Poseidon shares that sent the stock soaring from 80¢ to a peak of $280 in just over six months.

But by the end of 1970 the dream run was over with falling nickel prices sending Poseidon shares plunging to $39. Mt Windarra began production in 1974 but Poseidon failed to make a profit and collapsed two years later.

Niagara shares have staged their own run, more than trebling from 24.5¢, when Mr Forrest’s appointment was announced on April 4, to $1.08 on Tuesday.

The sharp appreciation of the stock means that Mr Forrest and his associates’ $2.2 million placement at 40¢ a share and a further 117.5 million incentive options, exercisable at 40¢ in five tranches at trigger points between 60¢ and $1, are already in the money.

Niagara shareholders are yet to approve Mr Forrest’s appointment and a restructure, which includes a two-forone share consolidation.

Mr Daws credits Niagara’s rally to the involvement of Mr Forrest.

“The fact that the stock has hit a high of $1.08, I think, is a pretty clear indication that the market thinks that Andrew Forrest and his team taking control of the fortunes of Niagara is a good thing for the company,” Mr Daws said.