uranium mine insider trading probe

Uranium mine insider trading probe
http://www.news.com.au/adelaidenow/story/0,22606,25788223-5006301,00.html


Article from:
MEREDITH BOOTH
July 16, 2009 12:01am
AUTHORITIES are investigating possible insider trading in Alliance Resources shares before the Federal Government announced its approval of Australia's fifth uranium mine.
Alliance shares began rising in the morning before the announcement before 2.44pm (EST) on Tuesday, when Environment Minister Peter Garrett announced approval of the $90 million Four Mile mine in South Australia – a joint venture between Alliance and US-owned Quasar Resources.
Alliance managing director Patrick Mutz was not aware of the announcement before it happened, but later said he was "surprised, but pleased" with the outcome.
The company secured a trading halt on its shares at 2.59pm, saying it was "clarifying a recent news headline regarding the Four Mile uranium mine".
The announcement was made officially through the ASX and, about two hours later, trading of the shares resumed.
Those who bought shares at 68.5c following Mr Garrett's announcement, and before the trading halt was put in place, would have made a 43 per cent profit on their investment if they sold out at yesterday's peak of 98c. Alliance shares closed yesterday up 12c, or 16.4 per cent, at 85c.
Australian Securities Exchange spokesman Matthew Gibbs said the exchange would investigate "as a matter of course" possible insider trading activity in the stock before news broke on the mine's approval.
"We spoke to (Alliance) in the morning (pre-announcement) to seek their view on what could be moving the price but they were unaware of any news," Mr Gibbs said.
Meanwhile, Mr Garrett, a former anti-nuclear campaigner, said yesterday the decision to approve the mine was not taken lightly. He said he had "set the bar to the highest level" to protect the environment, and would apply world's best practice to regulation.
The Four Mile mine, near the Beverley uranium mine, is projected to be among the world's top 10 uranium mines, producing 1400 tonnes of uranium oxide a year once operations begin at its forecast January 2010 start date.