ASIC investigates Hanlong executives

Production and Markets

Publishing Date: 13 Sep 2011 3:21pm GMT
Author: Mining Journal

Executives of Hanlong Mining Investment Pty have been ordered not to leave Australia and had their assets frozen over suspicion of insider trading.

The Australian Securities and Investments Commission said it received these orders from the Supreme Court of New South Wales in connection with an investigation into activities relating to Hanlong takeover targets, Bannerman Resources Ltd and Sundance Resources Ltd.

ASIC said the orders applied to Hanlong managing director Steven Hui Xiao, vice-president Calvin Zhu and employee Fan Zhang.

Freezing orders were also obtained for Xike Hu (Mr Xiao’s wife), FanFan Chen and Wingatta Pty Ltd, an entity associated with Mr Zhang, ASIC said.

In July, Hanlong made a A$144 million (US$153 million) takeover offer for dual-listed uranium developer Bannerman. Later that month, Sundance received a A$1.2 billion proposal for the 81% that Hanlong did not already own of the company.

ASIC said: “The court found that ASIC had shown a solid basis for investigating whether Mr Xiao may have contravened the corporations act insider trading provisions.”