Nuke spruik 'not true' atoll Robin Bromby January 24, 2007
CLAIMS that a tiny Pacific island could host more uranium than Olympic Dam have left well-known Melbourne mining figures Bryan Frost and Richard Revelins fighting for their business reputations after the Australian Securities and Investments Commission launched court action to ban them from running companies.
An August 2005 release by Yamarna Goldfields, now Mining Projects Group, said that company had taken an 80 per cent stake in a project on Niue that had "the potential to host uranium mineralisation of equal or greater quantity" than Olympic Dam. The news created a sensation coming as it did as the uranium frenzy was gathering pace, with Yamarna's price soaring 22 per cent on the day and 57 million shares traded.
But ASIC now alleges that the uranium claims were unfounded - and two directors traded in Yamarna shares immediately following the release of the announcement. It is seeking declarations of insider trading and misuse of information. ASIC has issued proceedings in the Federal Court against Mr Frost and Mr Revelins, executive chairman and executive director respectively of Mining Projects, alleging they engaged in misleading or deceptive conduct and that both men breached their duties as directors.
This is not the first time they have come under ASIC's gaze. In June 2004, they pleaded guilty to five charges brought by ASIC that they failed to declare changes in their directors' interests in listed Gaming and Entertainment Group. They were each fined $1500.
This time ASIC is seeking civil penalties and their disqualification from managing corporations.
Their latest troubles date to August 2005 when Yamarna said it had acquired an 80 per cent interest in a uranium project on Niue, home to 2600 people and whose main exports are canned coconut cream, honey and postage stamps. The Yamarna announcement said the planned exploration program was similar to that which led to the discovery of Olympic Dam in South Australia, the world's largest known uranium resource. It then added Yamarna's conceptual model showed Niue had the potential to host mineralisation of "equal or greater quantity" than Olympic Dam and the presence of uranium had been confirmed by New Zealand and Australian government geologists.
But Mr Revelins made a further claim when interviewed the next day on Radio Australia's broadcast to the Pacific region.
When asked by the interviewer how much of the uranium could be under Niue, he replied: "It's very early days, but it could be up to 10 per cent of the world's known uranium."
ASIC said yesterday it would allege historical exploration work did not support the presence of uranium, there was no geological association between Olympic Dam and Niue and nor did the company have reasonable grounds for representing Niue's potential to host uranium.
Mining Projects, which is now exploring for gold and base metals in the Pilbara, made no reference to Niue in its 2006 annual report.
Mr Frost and Mr Revelins are well known to many in the mining sector. Mr Frost, a former broker, has been involved with many listed companies over the past 30 years, including Trans-Global Resources. Trans-Global became Gaming and Entertainment, and is now Mintails, which is producing gold in South Africa.
Mr Frost is chairman of Mintails and Mr Revelins is also on that board. Mr Revelins is also non-executive chairman of Atlas Iron and Eleckra Mines. The two men are based at Peregrine Corporate, which styles itself as a boutique investment bank. Peregrine's website said the company had been involved with financing and launching several listed companies including Mintails, Atlas, Eleckra, De Grey Mining, Prana Biotechnology, Premier Bionics, Prima Biomed, Select Vaccines, IM Medical and Pinnacle VRB.
Mr Revelins last night told The Australian the charges would be strenuously defended. "We are also very upset because it is inappropriate that ASIC has brought these allegations into the public forum at a time when they knew that the allegations are the basis of proceedings and have yet to be heard in court," he added.
End.
Cheers, Pie
MPJ Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
