ASIC stops high flying explorer from issuing options 19:14,...

ASIC stops high flying explorer from issuing options
19:14, Tuesday, 11 July 2006

Sydney - Tuesday - July 11: (RWE Aust Business News) - The
Australian Securities and Investments Commission has stopped Australian
Mining Investments from taking an executive option vote.
ASIC today filed an application with the Supreme Court of
Queensland seeking an urgent interlocutory injunction against
Australian Mining Investments Limited restraining the company from
putting resolutions to approve the issue of executive options to
members at its general meeting to be held tomorrow.
Both parties agreed to Australian Mining Investments providing
an undertaking to the Court that it not proceed with the resolutions in
relation to the approval of options until August 25, 2006, with ASIC's
application being adjourned to a date to be fixed.
ASIC was concerned that disclosure of the resolutions to
approve the issue of a total of 10,000,000 options with an exercise
price of 50 cents to Australian Mining Investments directors, Mr Wayne
McCrae (7,000,000 options), Mr Timothy Koitka (2,000,000 options) and
Mr Peter Hutchinson (1,000,000 options) is materially out of date.
The Explanatory Memorandum to the GM values the options based
on a share price of Australian Mining Investments as at 29 May 2006,
which was 31.5 cents.
Australian Mining Investments last traded its shares, prior to
going into a trading halt on July 5, 2006, at $7.11.
Trading in Australian Mining Investments shares is currently
suspended.
"ASIC is concerned that members were being asked to make a
decision about the remuneration of directors on the basis of materially
out of date information," Ms Jennifer O'Donnell, Executive Director of
Compliance said.
"In particular, on the basis of recent market trading, the
value of the options to be expensed under International Financial
Reporting Standards could be considerably higher than disclosed to
Australian Mining Investments shareholders', Ms O'Donnell said.
ASIC is continuing to monitor disclosure and trading in
Australian Mining Investments and liaise with the Australian Stock
Exchange.