Australian Mines says it cannot explain sharp rises in its share price, after the ASX issued it with two queries in the space of seven days.
Australian Mines says it cannot explain sharp rises in its share price, after the ASX issued it with two queries in the space of seven days.
On May 22, the ASX said it noted a change in price of Australian Mines’ share price from 1.8 cents on May 21 to a high of 2.5 cents on May 22, a rise of nearly 39 per cent.
It said there was also significant increase in the volume of shares traded.
The ASX asked the company if there was any information that was not announced to the entire market via the ASX, that could be known by some in the market, which could explain the price and volume irregularities.
Later that day, the company issued a response to the query in which it simply stated “no”.
On May 29, the ASX said it noted a change in price of Australian Mines’ share price from 2.5 cents on May 28 to a high of 4.1 cents on May 29, a rise of 64 per cent.
The ASX issued the same question to the company, which it again responded with “no”.
During the period between the two price queries, no announcements were made on the ASX.
Last year, Australian Mines received three queries from the ASX.
In November, it received a query in regards to a potential deal around its flagship Sconi cobalt-nickel-scandium project in northern Queensland.
Australian Mines posted a picture of the South Korean office of established cobalt and nickel offtake partner SK Innovation on Twitter, with a caption inferring its managing director, Benjamin Bell, was heading to a meeting at the building.
The ASX asked whether confidential information about the company, that could have a material effect on its share price, was discussed at the meeting.
Such information would need to be announced to ASX under its disclosure obligations.
In a detailed response, the company said the conversation between the Australian Mines and SK innovation representatives was limited to the logistics for the dinner with the Australian Ambassador to South Korea and the Queensland Premier Annastacia Palaszczuk.
“There was also some minor discussion regarding the enormous number of Starbuck coffee houses in Korea compared to Australia, and the difference between Japanese and Korean architecture across Seoul,” it said.
“The topic of weather was also raised as Mr Bell arrived at the meeting without an umbrella and it was expected to rain in Seoul that afternoon.”
Australian Mines was established in WA, has an office in Perth, and Mr Bell is based in the state.
Shares in Australian Mines were up 2.95 per cent to trade at 3.3 cents each at the close of trade.
