Junior miner Copper360 has requested the Financial Sector Conduct Authority to investigate “unusual and uncommercial” trades in the company’s shares which could have breached the Financial Markets Act.
Copper360 CEO Jan Nelson said these trades have continued “on a systematic and sustained basis for a period of several weeks.”
He added that, “if the investigations reveal impropriety the company intends to take steps to recover any losses it may have sustained as a result, and to prefer criminal charges against responsible individuals and institutions.”
Nelson told Miningmx, “we have suspicions as to who is involved but they are hiding behind nominee brokerage accounts. If the investigation confirms these identities then we will go after them.”
Nelson added there was a clear trend evident on the JSE of traders putting through low priced sales on limited volumes towards the end of the trading day with the aim of getting the Copper360 price down.
He commented, “our shareholders are concerned because the business is going well and the international copper price is going up yet our shares are declining.”
Copper360 listed on the JSE in April last year after raising R152m from private investors at a placement issue price of 400c.
The listing was well received with the share rising to initial levels as high as R12 before settling into a steady trade around 400c from July to January since when it has drifted down to current levels around 250c.
