Subiaco-based Niagara Mining Ltd has responded to an Australian Stock Exchange share price query, saying the announcement of positive drilling results on Monday did not compromise its confidentiality obligations, despite knowing about them a month before.
Shares in the company rose from $1.13 on Friday to a peak of $1.79 on Monday, closing up 31 per cent at $1.48, on the release of positive drilling results from its Windarrra project.
Later that day, Niagara responded to another ASX query into an earlier price rise, but with no mention of the drilling results - instead referring to changes in significant holdings and a recen $8.6 million capital injection.
Today's announcement was in response to a second query, asking why the company had not mentined its drilling results in the previous letter.
Niagara company secretary Ross Kestel today confirmed the company had become aware of some features of the drilling results on or around April 10.
"However, due to the incomplete nature of this information and the various re-sampling, data compilation and internal reporting processes which culminated in the Company's competant person being in a position to consent to the release of the Announcement, the Company was not in a position to release until the time the Announcement was made," he said.
"The Company considers the carve outs to the Listing Rule applied until this time and it would be unreasonable to expect the release of incomplete and unverified information."
Mr Kestel also said he did not believe a trading halt was appropriate or necessary for the announcement.
Shares in Niagara were down 1.3 per cent to $1.49 at close of trade today.
