SHAREHOLDERS have warned the directors of Ovoca Resources at the company's annual meeting that they would be looking to have the company put up for sale if a long promised deal in Russia, does not come through.
Mr James Stanley, Ovoca's chairman, has been working on a mining deal in Northern Siberia for over three years. The mine, which is thought to be gold bearing, is set to be privatised.
"When the deal goes through there will be an enormous escalation in the share price," said Mr Stanley. But he added it was "premature" to release any further details. The directors expect the price to rise to around 50p per share.
Irate shareholders told Mr Stanley not to come to next year's annual meeting if the deal falls through. "Siberia will look good," one angry shareholder said.
But Mr Stanley insisted he was moving heaven and earth" to sign the deal and would be visiting the state governor tomorrow.
"As the single largest shareholder I am pushing like hell to get this done," Mr Stanley told the shareholders. "I'll lose face and credibility everywhere if this doesn't go ahead."
He added that specialist London natural resource broker, T. Hoare & Co, had already pledged to put up the financing. "They will also be introducing institutional shareholders which will give the share price stability", he added.
Multinational conglomerates, including Anglo American and Lonrho were told last week that their applications to take over the mine had been turned down, Mr Stanley said. "Baring a military coup in Russia, the deal will go through," he insisted.
But shareholders were unconvinced. Mr Frank Rea, a Tipperary farmer who claims to represent at least 3 per cent of Ovoca shares, warned he would try to call an extraordinary general meeting in July if the deal, had not gone through. He told," The Irish Times after the meeting; that he was "very disillusioned" with the situation.
Although Mr Rea voted against the re election of Mr Stanley as chairman, other shareholders supported him.
"It's be a waste of time getting them out. There's no money to pay anyone better and at least, they are shareholders," said Mr John Carroll, a "large" shareholder from Dublin. "But selling it off as a clean shelf company could be attractive," he added.
Mr Stanley, however, insisted that "they won't get a price for their shares".
A Russian deal would also allow the company to finance further drilling in Keel, Co Longford, shareholders were told.
Ovoca last traded on February 19th at 12p. Many shareholders, including Mr Rea, bought at between 24p and 29p.
