Panel Publishes Reasons for Decision in Precious Metals Australia Ltd Proceedings

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The Panel today published reasons for its decision in resolving the Precious Metals proceedings. The application was made by Westgold Resources NL in relation to an entitlement issue (rights issue) by Precious Metals under a prospectus dated 15 February 2002.

The Panel dismissed the application after Westgold commenced separate proceedings in the Western Australian Supreme Court. Those proceedings concerned the related party and prospectus provisions of the Corporations Act. They covered many of the same facts and issues as the proceedings which Westgold had already commenced in the Panel.

The Panel decided that it would be inappropriate to allow the application to continue in parallel with Supreme Court proceedings between the same parties, concerning the same facts and overlapping issues.

The rights issue was underwritten by companies associated with several directors of Precious Metals. Westgold's application related to the effect of the underwriting on control of Precious Metals if there was a significant shortfall in the issue. Westgold also asserted that it had concerns about the terms of the underwriting and of other transactions between Precious Metals and the directors and entities associated with the directors.

The Panel's reasons are available on its website.

Sitting Panel

The sitting Panel in this matter is constituted by Elizabeth Alexander AM (sitting President), Kathleen Farrell (sitting Deputy President) and Luise Elsing.

Nigel Morris
Director, Takeovers Panel
Level 47 Nauru House, 80 Collins Street,
Melbourne VIC 3000
Ph: +61 3 9655 3501