“Events suggest struggle for control of Leopold”

Press, Volume CXI, Issue 32565, 26 March 1971, Page 18

“Events suggest struggle for control of Leopold”

(N.Z.PjL -Reuter—Copyrights SYDNEY, March 25. Yesterday’s events centring around the suspension of dealings in Leopold Minerals N.L. shares suggest that a struggle for control of the company could be in the offing, the “Sydney Morning Herald” said today.

I The newspaper, in a finance i page report, continued: “In 'fact, the present directors of * Leopold could find themselves Rousted by their ex fellow director, Mr Robert Constable, who resigned from the board on Wednesday. “Interests associated with Mr Constable and his brother. Sydney sharebroker Mt David Constable, are believed to hold more than 50 per cent of Leopold’s capital. “Judging by Mr Constable’s letter dated March 21, the Leopold directors may be considering a placement, and the contingent dilution of the Constable interests. “His letter said that he I had requested an assurance; from Leopold’s chairman, Mil A. D. Treloar, that no equity; capital would be issued with-I out “adequate board consul-; tation,” but any such under-; taking was refused. “Mr Constable said in his I letter that unless such an: undertaking was immediately' forthcoming, an appropriate; legal restraint would be I sought to protect the interests; of shareholders. !

“Obviously, Mr Constable would have no difficulty in requisitioning an extraordinary meeting of Leopold (one only needs to control 10 per cent of the capital) at which he might put forward his i own nominations for a new board of directors.” Peter Bugler, the financial editor of the “Australian,” wrote today: “Just about the last thing the share markets and the in- : vesting public wanted at this

time was the suspension of Leopold Minerals. “After several months of lack-lustre trading, and then the Minsec fiasco, the report issued’ by Leopold last Friday on the results of drilling at its nickel claims at Nullagine had put new heart into the mining share market.

“In particular, it had revived the prospect that Poseidon was not just a ‘one off’ situation, and that other small mineral explorers might strike it rich and find a really big mine. “In the wider sense that possibility still exists but the events will have brought not only disillusion to the market, but also doubt as to the credibility of the Leopold assay results.” In Perth, the Western Australia Premier (Mr J. T. Tonkin) said he would ask the State Attorney-General (Mt J R. E. Bertram) to make an exploratory inquiry into the share market.

In Canberra, the chairman, of the Senate Select Commit- j tee on Securities and Exchange (Senator Sir Magnus Cormack) said that he was alarmed to learn of the events surrounding the suspension of Leopold. “The committee is already investigating the reason for the de-listing and other maters concerning the company,” Sir Magnus Cormack said.