Whim Creek’s Australian directors recently demonstrated their concern over the company’s offshore investments by ousting Hughes along with deputy chairman Harold Lindquist and chief executive Peter McAleer. Hughes is also chairman of Northgate.
But in a new agreement tabled recently, Whim Creek will sell its 11% interest in Australian gold producer Austwhim Resources and rationalize its shareholding in Northgate.
Northgate already owns about 9% of Whim Creek while Westfield retains a 6.5% stake in the Australian company.
Whim Creek, which is planning to produce 200,000 oz gold this year, holds a 48% stake in Westfield. Whim Creek also holds interests in Chile.
Norwest Holdings (a private company 51%-owned by Westfield and 49% by Northgate) has also agreed to sell its 15% stake in Whim Creek. The agreement requires both parties to collaborate in selling their interests in order to obtain the best possible price.
In addition, Northgate President John Kearney will be named a Whim Creek director. Lindquist has also been re-appointed deputy chairman of Whim Creek and McAleer will continue to act as a director.
If requested, Northgate says it will provide management and administrative services to Whim Creek.
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