ASIC obtains freeze on Hanlong executives

Hanlong Mining is under investigation by the Australian Securities and Investments Commission for suspected insider trading activities in the stock of its takeover targets, Perth-based miners Bannerman Resources and Sundance Resources.

Hanlong's managing director, Steven Xiao, has been barred from leaving Australia until September 22 by the NSW Supreme Court, while the Australian Securities and Investments Commission investigates.

Mr Xiao will be allowed to visit Hong Kong on September 13 and 14, to attend to visa requirements.

ASIC said it obtained ex parte orders on September 5, freezing the assets and restraining the travel of Mr Xiao, Hanlong vice president Calvin Zhu, and Hanlong employee Fan Zhang.

Freezing orders were also obtained for Mr Xiao’s wife, Ms Xike Hu, Ms FanFan Chen and Wingatta Pty Ltd, a private entity associated with Mr Zhang.

ASIC said the investigation was at an early stage, and would not comment any further on its status.

Sundance Resources released a statement today saying it had no comment with regards to the investigation, but said it would present no change to its previously stated strategy to find a partner for the development of the $US 4.7 billion Mbalam iron ore development in the Republics of Cameroon and Congo.

Sundance said it continued to advance its negotiations with Hanlong regarding Mbalam, and Hanlong's 50 cents per share takeover offer, which values the target at $1.44 billion.

“Sundance notes that the investigation does not relate to the conduct of Sundance or its personnel,” the company’s statement said.

Bannerman said it continued to talk with Hanlong about its takeover offer of 60 cents a share, valuing the target at $140 million.

By close of trade today, Sundance's stock had slipped 4.5 cents to 40 cents, while Bannerman shares had slipped 3.5 cents, to 31 cents.