Northern Minerals shares rally after foreign divestment order
Make us a preferred source
Make us a preferred source on Google
The news: Shares in rare earths miner Northern Minerals rallied in early trade after the Foreign Investment Review Board ordered six foreign investors to divest their shares in the company by 2 July.
Shares climbed 17.39% to 27 cents at 11:11am AEST.
The context: The order comes after the Treasurer found that the entity Hong Kong Ying Tak had acquired an equity stake equivalent to 3.79% of the company, in breach of the Foreign Acquisition and Takeovers Act.
He subsequently issued a disposal order against six foreign investors holding a combined 17.58% stake in the company.
Northern Minerals has until 30 June to hold its annual general meeting as it assesses the impact of the divestment orders on its meeting timeline and will provide further market updates.
What they said: “The Treasurer’s orders are an important step towards aligning Northern Mineral’s share register with Australia’s national security interests,” Northern Minerals executive chair Adam Handley said.
“We strongly believe in the need for a level playing field for all our shareholders, subject to the requirements of Australia’s foreign investment regime. Northern Minerals will continue to work cooperatively with FIRB and other regulatory agencies in relation to these matters,” he added.
The source: ASX
