Battle looms for control of Sutton

A showdown between management of Sutton Resources (VSE) and Barbara and James Sinclair is set for April 11.

The Sinclairs, who hold 1.8 million of Sutton’s 10.4 million outstanding shares, requested a general meeting of shareholders for the purpose of removing all the current directors in favor of a new board.

James Sinclair was ousted as chairman after current management learned of his and Barbara’s move to gain further control of the company.

President Michael Kenyon says current management also controls about 1.8 million shares. The remainder of the outstanding capital is held by individuals, with the exception of a South African bank.

Barbara Sinclair reportedly sold 220,000 of her shares in December to a subsidiary of the Standard Bank of South Africa, which now holds 520,000 shares.

Upon purchasing the shares, the bank issued a statement that they had been acquired for investment purposes and not in order to change or influence control of the issuer.

That conflicts with Barbara Sinclair’s statement that the Standard Bank agreed to act as her adviser.

Kenyon says he has written to the Standard Bank to confirm its involvement in the process, and is awaiting a response.

Sutton’s principal assets include interests in two large nickel-cobalt projects and a large gold project in Tanzania, as well as a gold project in Guyana.