http://www.theaustralian.news.com.au/story/0,25197,23831232-18261,00.html
Revolting shareholders
SOME shareholders at Contact Uranium (CTS) are revolting. Now here is a company with one of the most promising uranium projects at Corachapi in Peru, where it has an inferred resource of 9.2 million pounds with another 190 holes being drilled to enlarge that resource.
But what has some shareholders enraged is that Contact's executive chairman Richard Napier has called a meeting to issue 50 million options to Dubai company Exchange Minerals, which is controlled by mining magnate Mick Shemesian (formerly of Perth but now prefers to locate himself in the Gulf emirate).
The options will be issued at 0.5c each and can be exercised within two years at 15c in return for Shemesian's support and advice. Two years from now, the shares could, if the uranium project goes as well as expected, be trading at anywhere between 50c and $1. A nice windfall if you can get it.
And here's the other thing: the implications for the takeover code. If Shemesian exercises those 50 million options on the present capital structure, he would effectively gain control because it would represent a 27 per cent stake.
It should make for an interesting shareholder meeting on July 4.
CTS
contact uranium limited
