Hughes and McAleer out after Whim Creek dispute

Australian gold producer Whim Creek Consolidated has signalled its displeasure with some recent developments involving the company by replacing Chairman Pat Hughes and chief executive officer Peter McAleer.

The announcement follows a decision by Toronto-based Northgate Exploration (TSE) and Westfield Minerals (TSE) to pool their respective interests in Whim Creek into a new company called Norwest Holdings.

Under the agreement, Norwest was scheduled to hold an 18% interest in Whim Creek and 35% of Dublin based Ennex International.

“A majority of directors have been concerned for some time at the substantial investments held by Whim Creek in various offshore companies including 48%-owned affiliate Westfield Minerals,” said Hughes’ successor Harold Lindquist.

He said the investments have been placed beyond the practical control of the Whim Creek board and steps are already being taken to rectify the situation.

The steps include arranging for the cross shareholdings between Whim Creek and Westfield Minerals to be rationalized. The Whim Creek directors say they will also attempt to gain control of Westfield Minerals board which is chaired by Pat Hughes.

Hughes is also chairman of Northgate and Ennex while McAleer is president of Westfield and chief executive officer of Ennex.

The Whim Creek directors expect to realize about $40 million if their objectives are met which could be put to more productive use within Australian investments controlled by the board, Lindquist said.

While The Northern Miner was unable to reach Hughes and McAleer for comment, Northgate President John Kearney said the action may be challenged.