Trading in Poseidon shares suspended

Press, Volume CX, Issue 32460, 21 November 1970, Page 20

Trading in Poseidon shares suspended

, (N.Z. Press Association—Copyright) SYDNEY, November 20. The Adelaide Stock Exchange caused a sensation in the Australian business world today when it suspended trading in Poseidon nickel shares.

This action automatically suspended Poseidon shares on all Australian stock exchanges under the regulations of the Australian Associated Stock Exchanges. A hush spread across the floor of the Sydney Stock Exchange when the announcement was made through a public address system soon after trading started. The Adelaide Stock Exchange said the shares would be suspended pending the receipt of an official report on matters disclosed by a director of the. company at a meeting in Sydney yesterday. The director and largest individual shareholder (Mr Norman Shierlaw) was alleged to have made the statements at a private luncheon in a Sydney hotel. The luncheon was not open to the press, but an Australian national newspaper presented a report today quoting Mr Shierlaw on Poseidon’s Windarra nickel reserves. The report also referred to financing details supposedly given by Mr Shierlaw. The quotation of Poseidon shares was resumed in the

late afternoon, after the Adelaide Stock Exchange received a statement from the company. In the letter the directors of Poseidon said that Mr Shierlaw said in his lecture given to the Security Institute of Australia: “The figures for the minimum tons per vertical foot of potential ore at—4ooft quoted in the previous quarterly report for high and low grade ore (about 9000 tons per vertical foot) are expected to be maintained over the depths drilled to date. “Mineralisation has been shown to continue to some 2600 ft vertically below surface. “The cross-section published with the September 30 quarterly report showed five massive sulphide nickel ore bodies, and this is one of the best cross-sections known in the world. “It is considered that the above statements have been misinterpreted by certain sections of the press. In addition the board wishes to point out that a formal notice of take-over scheme has not yet

been given to Samin, Ltd, and therefore no decision can be made in relation to that company’s holding in Poseidon.” It is understood that the newspaper drew inferences from the speech regarding Poseidon’s ore reserves, and the attitude of Australian bankers towards the company. It is also understood that Mr Shierlaw has disputed these inferences, and has threatened legal action. '