Rampers text book, page-85

More Trumbull linked news below


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JOHN Cornelius has stepped down as chairman of Panaegis Gold Mines, one day before the company's shareholders were poised to vote on a resolution to oust him.
In the latest chapter in the internal battle for control of the company, Panaegis announced Mr Cornelius's resignation in a statement lodged with the Australian Securities Exchange after the close of the market on Monday.

Mr Cornelius's departure came one day before an extraordinary general meeting to decide on his future and follows the resignation of former managing director Ian Buckingham on September 5.

Seed investors Ralph Russell and Ann Hynes had requested the meeting after putting forward resolutions to remove the pair.

The breakaway shareholders contend that there has been a cost blowout at Panaegis linked to the company's exploration budget, directors' fees and relocation to a new office in Melbourne.

However, Mr Cornelius has argued that the company's exploration costs have been pushed up by the recent explosion in activity by other explorers, while the directors' fees are in line with the company prospectus and the office rental figures have been inflated by director Mike Trumbull.

Mr Russell and Ms Hynes, who hold a 9.5 per cent stake in Panaegis, were supported by Mr Trumbull, who is also a non-executive director of Beaconsfield Gold.

In May, Panaegis raised $945,000 from the issue of 10.5 million shares at 9 each - equivalent to 15 per cent of its issued share capital - to Beaconsfield.

Panaegis owns 51 per cent of the Nagambie gold mine in northern Victoria. Joint venture partner Perseverance Corp holds the balance.


Panaegis shares closed 0.5 lower to 8.5 yesterday.****