From:The AustralianAugust 20, 201212:00AMA FORMER partner in...

From:The Australian
August 20, 201212:00AM



A FORMER partner in Intrepid Mines' hijacked Indonesian copper-gold project is rallying shareholders for a class action against the board.

Paul Willis says he is ready to seed-fund class actions in Australia and Canada if there is sufficient interest in suing over the company's alleged failure to properly inform shareholders of the legality and enforceability of its 80 per cent interest in the Tujuh Bukit project.

Last month, the Brisbane-based company lost control of what it describes as one of the world's largest undeveloped copper-gold-silver resources when its Indonesian partner ejected Intrepid staff from the tenements.

Intrepid claims it earned an 80 per cent economic interest in the East Java project by spending about $95 million on it.

But the tenement titles are held by Indo Multi Niaga. IMN's former major shareholders recently sold control to undeclared Indonesian interests, who so far have refused to negotiate with Intrepid.








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Managing director Brad Gordon this month insisted that "Intrepid has, at all times, conducted itself in a straightforward and honest manner with absolute adherence to the law".

Mr Willis, a Jakarta-based mining investor, told The Australian he set up IMN, with Indonesian nominee shareholders and directors, to hold the Tujuh Bukit tenements and bring a bigger partner into the project.

The new partner, Emperor Mines, merged with Intrepid in early 2008, but Mr Willis claims Emperor's option on the project expired on March 30 that year.

When he tried to introduce an Indonesian company as a replacement, Mr Willis alleged his IMN nominees joined with Mr Gordon to force him out.

Now executive director of explorer Sihayo Gold, Mr Willis says he plans legal action over that matter. However, he said the proposed class action was a separate issue, though he had a strong personal interest because of the way Intrepid had dealt with him.

"I'd only be human," he said. "But the fact remains Intrepid shareholders have a right to question the level of disclosure about this project."

Mr Willis is advertising in Australia and Canada for shareholders to register interest in a class action. He claims that they have been "materially misled" about the security and enforceability of the Tujuh Bukit arrangement.

This was particularly so, he alleges, before Intrepid published a prospectus for its December 2010 $C112 million raising on the Canadian market. The prospectus contained the most detailed explanation to that time of Intrepid's agreements and its expectations of obtaining 80 per cent direct equity in Tujuh Bukit.

The company holds about $US125m ($120m) cash.

Mr Gordon and chairman Colin Jackson could not be reached for comment yesterday.

But on August 7, they issued a statement setting out the Tujuh Bukit agreements, IMN's failure to perform and Intrepid's determination to pursue its rights.

In it, Mr Gordon said "nefarious and unfounded" statements had been circulated about Intrepid's agreements and negotiations in relation to Tujuh Bukit.

Intrepid, listed on the ASX and Toronto exchange, closed on Friday at 31c in Australia.



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