Again thanks to HTD who provided the link .See:-...

Again thanks to HTD who provided the link .See:- http://www.miningmx.com/juniors/666584.htm

Full Story from Miningmx:-

BUST UP AT MINTAILS SINKS THE SHARE PRICE
Brendan Ryan
Posted: Wed, 16 Jul 2008
[miningmx.com] -- A BOARDROOM battle is underway at ASX-listed junior miner Mintails and developments may come to a head at a meeting to be held in Sandton on Friday.

That’s when Australian executive chairman Bryan Frost and his partner, Richard Revelins who is also an executive director of Mintails, will meet a group of dissident shareholders fronted by SA investor Pat Smythe.

Mintails is re-establishing the former East Rand Gold and Uranium (Ergo) operation near Springs in partnership with DRDGold. Mintails is also developing a similar operation on the West Rand – called West Rand Gold and Uranium (Wergo) - over which it has sole control.

The Mintails share price has collapsed over the past six months from around A$0.75 to around A$0.20 to the consternation of investors given that the Ergo project is running on track and will start production as scheduled in October.

Junior miners have been hit across the board by the fall-out from the sub-prime crisis while uranium companies have, in addition, been battered by the collapse in the uranium spot price during this period.

While Mintails will start up as a gold producer it intends diversifying into both uranium and sulphuric acid production. Phase One of the Ergo project will produce 75,000oz/year of gold.

But, despite this, Mintails’ performance has still been one of the worst on the ASX in recent months and the real reasons for that are only now starting to become clear.

At best, investor uncertainty over what’s really going on is hitting the shares. At worst, there may be a bear raid underway on the company which is what Frost alleged today during an interview in Johannesburg.

Frost commented, “it looks like a bear raid in that the share sales seem to have been timed to knock the share price down. We have checked as best we can amongst the nominee companies on our shareholder register but we don’t know who is selling and we don’t know who is buying.

“We have approached our major shareholders - institutions like JP Morgan and Merrill Lynch – and it’s not them.

“It seems there have also been calls made to certain shareholders from people making allegations such as that Mintails does not have the money to bring Ergo into operation. That’s rubbish. We’ve got A$22m in the bank.

“It’s easy to cast a shadow over a company in a bear market. The question you have to ask is - why would they do that? The conclusion we have reached is that somebody wants us out and they are using every trick they can, “ Frost said.

Frost added, “ if it sounds like I am pissed off it’s because I am. I don’t need this shit. The suggestion has been made that additional directors be put on the board. The suggestion has also been made that Mintails should be run by mining people and not entrepreneurs like myself.

“But the company is being run by mining people. That’s why we have DRDGold executives running the Ergo operations and why we appointed Basie Maree as group chief operating officer. (Maree is a former consulting metallurgist for AngloGold Ashanti.)

“We will not stand in the way of people with legitimate proposals and who can do a better job of running the company than we can. But let’s see their credentials. Let them come forward upfront like they do in Australia instead running around behind our backs.”

Frost readily acknowledged that, if investors want him and Revelins out, then both are vulnerable because of their limited shareholdings in Mintails although he added, “ I would be disappointed if the major shareholders did not support me.”

The two own some 17m shares equivalent to just 2.5% of the company. Suggestion from one source is that Smythe may have the backing of shareholders controlling up to 40%. Smythe did not return calls placed to him.

In December 2006, Mintails merged with Skeat Gold Mining (SGM) a company owned by mining contractor and entrepreneur Peter Skeat.

SGM had previously bought the mothballed East Daggafontein treatment plant from AngloGold Ashanti and held an option to buy the Brakpan plant.

Skeat was initially appointed COO for Mintails but stepped down to be replaced by Maree earlier this year. He is not a director of Mintails.

Frost commented, “I have spoken to Peter and he has given me his support verbally but he has also told me that he has been in discussions with the other parties and that some of their suggestions are worth adopting.”

Skeat commented, “the situation is that Mintails’ opportunities have not been maximised under Bryan Frost. The company has not gone forward aggressively the way it should have and that has been reflected in the drop in the share price.”

END