22 November 2017
Mr
By
Dear
Mustang Resources Limited (“MUS”)
ASX refers to your email dated 6 November 2017 raising queries regarding MUS’s management of its
continuous disclosure obligations and the action taken by the ASX.
MUS sent its request for a trading halt via email on Saturday 28 October 2017. MUS’s email failed certain
filters at the ASX gateway and consequently was not received by the ASX team responsible for processing
trading halts. As a result MUS’s shares commenced trading on 30 October in the usual way.
On the morning of 30 October, ASX’s Surveillance Group was alerted by its automated surveillance system
to the unusual price and volume movements then occurring in MUS’s shares. MUS’s designated ASX contact was not available to respond to ASX’s enquiries about this. Consequently, and in accordance with its usual
practices in these situations, ASX suspended trading in MUS’s shares and issued it a price query.
MUS’ response to the price query, released on the Market Announcements Platform on 1 November 2017,
is available at:
http://www.asx.com.au/asxpdf/20171101/pdf/43nwfknhj2ryz1.pdf.
I assure you that all mandatory processes relating to ASX’s license to operate its market were followed in
relation to these events, and that the Australian Securities and Investments Commission are aware of the
events in question.
With respect to your statements to the effect that the market for MUS remains uninformed, we take it that
the basis for your belief in this respect is that all the buyers who attended the rough ruby auction on 30
October would be aware of the bid schedules that MUS did not sell on the day and therefore, to overcome
this information asymmetry, MUS should disclose more information about the rubies that did not sell on
the day.
MUS disclosed the auction results on1 November 2017 (see
http://www.asx.com.au/asxpdf/20171101/pdf/43nw0nl9fxd8cy.pdf), which it described as “clearly
disappointing”. It also released a detailed strategy update on 16 November 2017 (see
http://www.asx.com.au/asxpdf/20171116/pdf/43p90y7r2hjj1y.pdf) disclosing among other things that
its current ruby inventory of 386,033 carats is being re-graded in light of its auction experiences.
At this point, ASX is not currently aware of anything to suggest that the market for MUS is uninformed.
ASX’s Surveillance Group monitor continues to monitor trades in MUS’ securities for patterns in trading that may suggest that certain investors are trading with knowledge that is not known to the broader market.
ASX Limited 20 Bridge Street
www.asx.com.au
ABN 98 008 624 691 Sydney NSW 2000 Customer service 13 12 79
Thank you for your email. We hope this letter has helped clarify the situation.
Yours sincerely
Isabelle Andrews
Adviser, Listing Compliance (Perth)
P: 13 12 79
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