DESPITE an incorrectly worded shareholder request, an extraordinary meeting of Christmas Island phosphate miner Phosphate Resources Limited shareholders is expected to be held in March. h
DESPITE an incorrectly worded shareholder request, an extraordinary meeting of Christmas Island phosphate miner Phosphate Resources Limited shareholders is expected to be held in March.
Union of Christmas Island Workers secretary Gordon Thomson said he had gathered a petition with 850,000 shares signed to it, about 27 per cent of the company’s equity on issue, calling for the EGM.
The meeting was to be called to spill the unlisted phosphate miner’s board.
Phosphate Resources chairman Michael Perrott said he had received advice that the petition was just that, and not a notice for an EGM.
“We know what they wanted to do but it wasn’t worded quite right,” he said.
Mr Perrott said the company had not ignored the shareholder request.
“We’re quite happy to have a share-holders’ meeting,” he said.
However, Mr Perrott said he would take guidance from the Australian Securities and Investments Commission about when the meeting would take place.
“In the petition they’ve asked for March 1. We may still be able to keep that,” he said.
The ASIC has placed a stop order on the prospectus for a rights issue that Phosphate Resources was going to conduct, pending the outcome of a takeovers panel investigation of the rights issue.
The proposed rights issue came just six months after Phosphate Resources announced a $4.2 million share buy-back of one quarter of its equity.
As a result of the buy-back, Asset Backed Holdings, a company that Mr Perrott also directs, emerged with a 26.7 per cent stake. It had previously held a 19.9 per cent stake.
Asset Backed was also going to underwrite $2.7 million of the proposed $4.2 million rights issue.
If the rights issue had gone ahead and not been fully subscribed then Asset Backed could have emerged with up to a 39.6 per cent stake in Phosphate Resources.
Phosphate Resources is currently negotiating with the Federal Government for compensation over mining leases it is surrendering to make way for the Commonwealth detention centre, extensions to the island’s airport and the proposed space port.
Mr Perrott said the company was seeking up to $20 million in compensation for the land it is surrendering to make way for the detention centre.
The company is also negotiating with the Federal Government to gain access to phosphate stockpiles that are contained in the 65 per cent of Christmas Island that has been declared a national park.
An adviser to Federal Regional Services, Territories and Local Government Minister Wilson Tuckey said the minister had only received “informal approaches” from Phosphate Resources board.
Informal approaches is often short-hand for approaches through Liberal Party sources.
Phosphate Resources consultant Michael Huston was part of the faction that unseated Liberal powerbroker Noel Chricton-Browne.
Phosphate Resources was created in 1991 to ensure that the miners on Christmas Island were left with work.
Asset Backed gained access to its 19.9 per cent stake in the miner through one of Phosphate Resources founding directors David Argyle.
