Mantengu claims share price manipulation targeted PGM deal

MANTENGU Mining, a R171m chrome miner, today published incendiary accusations claiming its share price had been manipulated and that the Johannesburg Stock Exchange had ignored its complaints as it was protecting an illegal trading syndicate.The JSE denies the allegation contained in a detailed affidavit which is signed off by Mantengu CEO Mike Miller. In the document, seen by Miningmx, he alleges his former CFO Ulrich Bester perpetrated the share price manipulation.Bester, who is a director Liberty Coal and Liberty Coal Terminal, is yet to respond to Miningmx inquiries. Bester is also a 7% shareholder of Mantengu.According to Miller, Bester sought to frustrate Mantengu’s ongoing acquisition of Blue Ridge, a dormant platinum group metal mine owned by Sibanye-Stillwater.The affidavit, which has been submitted to the Hawks, describes how Bester’s alleged motive was to suppress Mantengu’s share price such that its proposed purchase of Blue Ridge required the maximum regulatory compliance.Transactions worth 30% or more of the buyer’s market value would have required onerous demands of Sibanye-Stillwater which would subsequently have cancelled the deal.At around the same time as Mantengu’s share price was being manipulated by Bester – principally between April and June last year – Bester was establishing control over another listed Sable Exploration and Mining (SEAM), run by former market analyst James Allan.In return for cash injection via a R50m rights issue, Bester won control of SEAM and forced Allan out of the company with the aim of it becoming his vehicle for a renewed Blue Ridge offer. Allan unsuccesfully sought answers to why he had been frozen out of the company in an requisitioned general meeting attended by Miningmx.Miller says that in addition to Bester, SEAM’s connection with Liberty Coal is also held via Ian Bird, SEAM’s chairperson who is a director of Liberty Coal Terminals.According to Miller’s affidavit, SEAM was used as a front to bid for Blue Ridge, a necessary step as Sibanye-Stillwater had declined to deal with Bester at Liberty Coal owing to reputational issues.Commenting on Mantengu’s allegation regarding JSE complicity with share price manipulation claims, JSE’s legal counsel Louis Cockeran said none of the JSE executives mentioned in the affidavit “were part of any of the transactions”.However, the JSE had referred Mantengu’s share price manipulation complaint to the Financial Sector Conduct Authority (FSCA) for investigation.Gehard van Deventer, divisional executive for enforcement at FSCA told Miningmx the investigation was complete. “We fully investigated that, absolutely fully investigated it,” said Van Deventer. “
I just can’t I can’t tell you the outcome because we now have to consider the outcome. That’s where we are.”Van Deventer said claims the JSE was involved in covering up the syndicate was a new claim that didn’t fall under its investigation. Cockeran described the claims the JSE was in league with a syndicate as “wild”.Miller said the company continued to work with Sibanye-Stillwater, as well as the Department of Mineral Resources regarding finalisation of regulatory controls to transfer the asset in terms of Section 11 of the MPRDA. It was expected to be completed by end-April as per the affidavit.The post Mantengu alleges PGM deal target of share price manipulation appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com