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Australia’s corporate regulator is reportedly looking into Lynas Corporation Ltd's (ASX:LYC) sale of a rare earths and metals deposit to Forge Resources Ltd (ASX:FRG) due to concenrs over disclosure, postponing a key shareholder vote.
The proposed transaction has come under fire from shareholders as Lynas’ executive chairman Nicholas Curtis, also the non executive chairman of Forge Resources, stands to vest 24 million in Forge performance shares valued at $30 million.
If the deal goes ahead Mr Curtis’ stake in Forge could rise to near 40 per cent, while his ownership of Lynas stands at under one per cent.
According to Fairfax Media the Australian Securities and Investments Commission has demanded changes to Forge's related party disclosures included in its notice of meeting, delaying it from being sent to shareholders.
Fairfax says Forge will now not be able to reach its targeted 18 May deadline as shareholders must receive a formal notice of meeting 28 days in advance.
In the first half of the 2011 financial year Lynas Corporation recorded a $20.5 million net loss.
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