Pure Metals suing HIO for $4.3m

In the Australian today in margin call says Pure Metals is seeking $4.3m from Shaw and Partners and Hawsons for selling HIO shares without their (Pure Metals) permission. Selling at 4.3c when market price was 15c. The article is very short on detail so maybe its an adventurous claim. HIO most likely will need to put an announcement out to clarify this.

The case has been brought by Pure Metals Pty Ltd against listed miner Hawsons Iron over a hefty and heavily disputed sale of shares brokered by Shaw and Partners a year ago.READ NEXTBroadly, Pure Metals held a 24.149 per cent interest in Hawsons’ iron ore mine at Broken Hill, in far western NSW, which it agreed to sell for 90,800,800 Hawsons shares.These were to be delivered in two tranches and sold off by Shaw, the listed second defendant in the matter.Exactly why did Pure Metals choose Shaw? It was introduced to the firm by Hawsons’ managing director, Bryan Granzien, in an email to Shaw traders Mark Gray and Tony ‘‘The Burglar’’ Davis. This detail becomes relevant as the story continues.
Shaw was instructed to sell the shares at a price of 4.3c once they were issued to Pure Metals, and this sale occurred as planned on May 18 for a price of $1,913,715 after brokerage fees.Unfortunately, Pure Metals discovered that some of the buyers of its shares were principals at Shaw; this was despite the broker claiming to have lined up institutional purchasers in the lead-up to the sale of the shares.Perhaps most offensive of all was that the market price for the shares had increased by that point to 15c, netting a substantial windfall for Shaw’s principals. They are not identified in the claim, but we are eager to determine who pocketed the sum.“Pure Metals was unsatisfied with the responses from Shaw, leading to more questions than answers,” the statement of claim says.