Porn king drives shakeup at Paynes Find Gold

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Perth porn king Malcolm Day and skimpies boss Steve Zielinski are among a group of major shareholders backing an executive shakeup at junior explorer Paynes Find Gold.

The Australian reports today the company is under pressure from shareholders over wasting funds and paying excessive salaries.

Day, the founder of Adultshop.com, and Zielinski have joined with other investors in calling for Perth businessman Carl Popal to seize control of the company.

On Friday the dissident shareholders will push to install new directors at an extraordinary general meeting.

Shareholders have become increasingly frustrated with the company in the last few months over its lack of progress.

According to the company’s annual report it spent around $960,000 on exploration between its November 2010 float and the end of June 2011.

But $1.9 million, or almost double its exploration spending, was shelled out on corporate, employee, and administrative costs.

Last quarter Paynes Find Gold spent $446,000 on administration and around $150,000 on exploration.

According to The Australian Zielinski said the Australian Securities and Investments Commission needed to investigate Paynes Find “before shareholders lose all their money”.

Last month Paynes Find further raised the ire of shareholders after it reappointed a director, Adam Bennett, who had been voted out at the company’s AGM.

Over the past six months Paynes Find shares have crashed from a high of 19.5 cents to the current level of 6 cents.

Paynes Find company chairman told The Australian spending was under control and the current losses were not unusual for a junior explorer.

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