Shares in Golden West Resources Ltd have jumped 30 per cent on an unusual heavy day of trade as Portman Ltd's shareholding grip on the company loosens due to dilution.
Golden West's share price closed the day at $2, up from $1.55 with over 2.3 million shares traded, compared to the average volume over the past week of about 30,000 shares.
WA Business News understands that Portman has bought 2.3 million Golden West shares through brokers Hartleys and Bell Potter.
Earlier today, Portman announced that its shareholding had been diluted from 19.9 per cent to 17.38 per cent as a result of further shares being issued by Golden West.
Earlier in the week, the Foreign Investment Review Board approved a share placement by Golden West to China's Hunan Valin Steel Tube & Wire Co Ltd of 14.4 million shares priced at $1.85 each.
The placement has given Valin, which last week signed an iron ore off-take agreement with Golden West, an 11.4 per cent stake.
The announcements come ahead of a shareholders meeting next week, which was requisitioned by Portman in a bid to replace two Golden West directors with its managing director Richard Mehan and Paul Piercy.
A Portman spokesperson told WA Business News that the company was looking to place people with iron ore experience at a board level, and has welcomed the appointment of former Rio Tinto senior manager David Rose as chief executive.
The spokesperson added that Portman has received widespread support from shareholders prior to the shareholders meeting due to be held next Friday, with proxy votes in favour of the company's proposal already submitted.
The deadline for proxies to be handed in is Monday.
