Unravelling of Whim Creek

Press, 28 December 1988, Page 23

Unravelling of Whim Creek

NZPA-AAP Sydney The West Australian goldminer, Whim Creek Consolidated Nl, has struck a deal aimed at unravelling a complex web of cross-shareholdings which saw about sAust4BM of company funds channelled offshore. Whim Creek plans to sell off the 26 per cent of shares it holds in itself through a string of Cyprus and Canada-based companies and has reformed the board after a shakeup last month. The announcement came after about a month of negotiations between Whim Creek and associated

companies after the share deals were revealed last month by Whim Creek’s advisers, Whitlam Turnbull and Company. The revelations led to the ousting of the company’s three Irish directors, the chairman, Mr Patrick Hughes, and Mr Peter McAleer and Ms Andrea Meldrum. They have now been returned to the board. Whim Creek directors said in a statement they had reached agreement with Toronto-based companies Westfield Minerals and Northgate Exploration “with regard to the ongoing business of Whim Creek.”

Whim Creek indirectly holds 48% of Westfield, which in turn has about 10% of Northgate. Directors said the deal would "provide a basis for the rationalisation of the various cross shareholdings which exist between Whim Creek and these companies.” Under the agreement, Whim Creek’s 95% owned Austwhim Resources Nl will dispose of its 11% shareholding in Whim Creek and Norwest Holdings Inc. (jointly owned by Westfield and Northgate) will sell its 15% stake in Whim Creek.