A PRESS release issued in response to queries about an incident in which a mining company director sleepwalked naked to the room of a female colleague was not “loaded” and deliberately untrue, a public relations consultant has told the High Court.

Jim Milton was giving evidence on the fifth day of a libel action brought by Donal Kinsella, a former deputy chairman of Kenmare Resources, over the press release of July 10th, 2007. Mr Kinsella, who was removed as a director that year, claims he was made an international laughing stock as a result of the press release issued by the company.

It stated the resignation of Mr Kinsella as chairman of Kenmare’s audit committee was being sought following an incident the previous May at the company’s titanium mine in Moma, Mozambique, in which Mr Kinsella sleepwalked and opened the door of a female colleague’s bedroom at the mine’s accommodations block three times.

Mr Milton said yesterday the press release was drafted in consultation with two company directors and Deirdre Corcoran, the company secretary whose bedroom door was opened in the incident.

Ms Corcoran had asked whether there was a need for her to be named in the release, Mr Milton said. He had advised that she should be named as Irish Daily Mirroreditor John Kierans had asked for her by name when he rang up asking about the Moma incident, Mr Milton said.

If you did not have a relationship with a journalist, and he had not dealt with Mr Kierans before, it was necessary to make sure what you were doing was factual and down on paper, he added.

When it looked like the Mirrorwas going to run with the story, Mr Milton said he thought it was important to issue the press release on a limited basis to the senior business correspondents of the three national daily broadsheet newspapers.

Asked by Oisín Quinn, for Kenmare, about Mr Kinsella’s claims the release was “loaded” and that what was being put out was deliberately untrue, Mr Milton replied: “Absolutely not.”

Mr Milton said the company was facing a situation in which the Mirrorjournalist had said the story had a sexual element and that it was likely to be carried in the paper. There was a need to indicate to the company's shareholders that a special board meeting was being called, along with the reason for it, he said.

This was a situation where the chairman of the company was seeking the removal of the deputy chairman from a position within the company, he said. It was important this be explained or it could appear there was “corporate civil war” within the company.

Mr Milton said he rang and e-mailed both Mr Kierans and Mr Kinsella with the the contents of the release before it was released.

Cross-examined by Declan Doyle SC, for Mr Kinsella, Mr Milton agreed it was important that press releases be precise and accurate. He denied the press release was not put out on a limited basis (to the Mirrorand the broadsheets).

Evidence has concluded and the jury is expected to retire today after hearing closing speeches from Mr Justice Éamon de Valera.