Paul Garvey, http://www.miningnews.net/StoryView.asp?StoryID=62693
Thursday, 27 July 2006

THE nominated advisor (Nomad) and proposed new auditor of Rusina Mining have
both threatened to quit the company should resolutions put forward by former
managing director Vladimir Nikolaenko be passed at specially convened
shareholders’ meetings next month.

The saga between Nikolaenko and the current board of Rusina took on a new
twist after Beaumont Cornish - the Nomad that administers the Alternative
Investment Market shares of the dual-listed company - said it would resign
from its position should Nikolaenko’s proposal to appoint Bradley Moore as a
director of Rusina be approved by company shareholders.

As per AIM guidelines, a company without a Nomad is automatically suspended
from the board and the listing cancelled altogether if a replacement Nomad
cannot be found within a required period.

Last year, Reefton Mining - which is presently chaired by Moore - had its
AIM listing cancelled after it failed to secure a replacement Nomad. The
company’s previous Nomad had resigned from its position after an Australian
Securities and Investment Commission started an investigation into Reefton.

Meanwhile, KPMG has indicated it will withdraw its consent to act as auditor
for Rusina should current Rusina directors Gordon Getley, Julian Tambyrajah
and David Hands lose their positions at next month’s vote.

The developments came as Rusina announced it would now hold a second
shareholders’ meeting on August 25 - in addition to the previously announced
meeting on August 23 - to consider another proposal from Nikolaenko, this
time for the appointment of Moore to the board.

The previous meeting called by Nikolaenko will see shareholders vote on the
former managing director’s proposal to remove Getley, Tambyrajah and Hands
from their Rusina roles.

Nikolaenko, who owns more than 5% of Rusina’s issued capital through several
entities, called for the meetings as pursuant to Section 249F of the
Corporations Act 2001.

In his letter calling for the appointment of Moore, Nikolaenko said the
current Reefton chairman and non-executive director of Adultshop.com was
involved in a de facto relationship with Nikolaenko’s daughter, making Moore
and Nikolaenko related parties. Nikolaenko said he did not consider the fact
he and Moore were related parties an impairment to Moore’s ability to add to
the board’s skills.

Tambyrajah, Rusina’s chief financial officer, told MiningNews.net the
potential loss of the company’s Nomad and AIM listing would be a major
setback for the company’s ambition of bringing the Acoje platinum-chromite
deposit in the Philippines into operation.

“Securing an AIM listing was a goal we had had for some time, and losing
that would be quite a blow for the company as it would take away from our
capital-raising capacity,” he said.

Shares in Rusina were down 0.5c (2.9%) at 17c in midday trade.