ASIC files urgent injunction against AMI
July 11, 2006 - 8:14PM
The corporate watchdog has sought an urgent injunction to stop Australian Mining Investments Ltd (AMI) from putting the issue of options to its three directors to a shareholder vote on Wednesday.
The Australian Securities & Investments Commission (ASIC) filed the application with the Supreme Court of Queensland amid concerns that the mining explorer's recent share price spike has rendered the resolutions "materially out of date".
AMI has agreed not to proceed with the resolutions until August 25, with ASIC's application being adjourned to a date to be fixed.
"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that members were being asked to make a decision about the remuneration of directors on the basis of materially out of date information," ASIC executive director of compliance Jennifer O'Donnell said.
"In particular, on the basis of recent market trading, the value of the options to be expensed under International Financial Reporting Standards (IFRS) could be considerably higher than disclosed to Australian Mining Investments shareholders."
AMI had sought to issue a total of 10 million options to purchase shares at a price of 50 cents each to directors Wayne McCrae, Timothy Koitka and Peter Hutchison.
Shareholders had been set to vote on the options resolutions at a general meeting in Cloncurry, Queensland, on Wednesday.
The explanatory memorandum to the general meeting valued the options based on AMI's share price of 31.5 cents at May 29.
Since that time AMI shares have soared, last trading at $7.11 before a trading halt was imposed last Wednesday, pending an announcement.
Investors had been piling into the stock following reports indicating that AMI's Rocklands copper project is much bigger than initially expected.
However, ASIC and the Australian Stock Exchange (ASX) have commenced investigations into AMI amid concerns that its reports omitted important details.
ASIC said it was continuing to monitor AMI and liaise with the ASX.
AMI shares remain in a trading halt.
AUM
australian mining investments limited
