Cazaly at a loss over share price surge Source: Associated Press
See also Iron Ore Board Iron Ore CatalogCazaly Resources Ltd, which is battling Rio Tinto Ltd for a prized iron ore tenement, says it is at a loss to explain a 30 per cent gain in its share price.
Cazaly was slapped with a price query from the Australian Securities Exchange, which queried an unexplained rise in the explorer's share price.
The company's shares surged 31.4 per cent or 18.5 cents to 77.5 cents on Wednesday on the back of no news.
Cazaly shares were heavily traded with more than 4.6 million shares changing hands.
In addition, shares in Echelon Resources Ltd, Cazaly's partner at the prized Shovelanna iron ore tenement in the Pilbara, surged 25.7 per cent or nine cents to 44 cents, again on the back of no news.
At a loss to explain the price surge, Cazaly managing director Nathan McMahon pointed to a March 19 hearing in the West Australian Supreme Court about the disputed tenement and a recent win in the Court of Appeal.
"Obviously people are aware of the hearing is going to be in March, obviously they are aware we got discovery ... that's all I can say at this point," Mr McMahon said.
The junior miner recently had a victory in the Court of Appeal, which ordered Rio and the WA government to hand over a number of documents, which the resources giant relied on to win back the deposit.
Mr MacMahon ruled out a possible settlement with Rio.
"We think morally and more importantly legally the tenements should belong to us, we think minister Bowler has made an awful mistake based on bad advice and we want to explore, mine and develop Shovelanna," he said.
Cazaly snared Shovelanna late last August, after Rio let its own licence expire, but the tenement was handed back to Rio after Goldfields Minister John Bowler used his discretion under the mining act.
CAZ Price at posting:
0.0¢ Sentiment: None Disclosure: Held
