Metalsearch Response To ASX Concerning Price And Volume Movement

Metalsearch Limited (ASX: MSE) is a growing metal company based out in Perth, Australia. The company has a portfolio of gold and base metals projects in the Southern Botswana region of Africa with 100% ownership. The company is currently focussing on two projects, i.e., Kraaipan Gold-Nickel-Copper-PGM Project and Kraaipan West Gold-Nickel-Copper-PGM Project.

The Kraaipan Gold-Nickel-Copper-PGM Project is MSE’s flagship project which was acquired in May 2017. 30km to the west of the Kraaipan Project is the Kraaipan West Gold-Nickel-Copper-PGM Project which was acquired in June 2017.

On 4 January 2019, ASX wrote a letter to MSE as it noted a significant movement in the price of MSE. The scrip marked a high of 1 cent with a low of 0.7 cents along with a substantial increase in the volume from 3 January 2019 to 4 January 2019.

Due to this movement, ASX asked the company whether there is any information that the company has not announced, which could explain this movement. If yes, then is MSE relying on Listing Rule 3.1A not to declare that information under Listing Rule 3.1 or can it make the announcement immediately and if not immediately then by when it is expected to make the announcement. If MSE does not have any information to be announced, then can it provide any other explanation for the recent trading in MSE’s securities?

In addition to this, ASX asked MSE whether it is complying with the Listing Rules. Further, it asked the company to authorize its responses and get them approved under the published continuous disclosure policy or through the board or a person from the board with the delegated authority.

ASX made the request under Listing Rule 18.7 with a response by no later than 6 AM AWST Monday, 7 January 2019, failure to which ASX will suspend trading in MSE’s securities under Listing Rule 17.3. ASX asked MSE to send the response first to the writing officer at ASX, i.e., Ms. Jessica Coupe via e-mail followed by the ASX Market Announcements Office. This was done so in order to evaluate the response before publishing it on the ASX Market Announcements Platform.

In response to the ASX’s query, the company immediately responded through an email stating that it does not hold any information that must be announced to the market explaining the reason for the price and volume movement. Further, it confirmed that it is following the Listing Rules and, specifically the Listing Rule 3.1 and the responses have been authorized and approved under the published continuous disclosure policy or through the board or a person from the board with the delegated authority.

During the past 1 year, the company has yielded a negative return of 57.49% falling from 2.4 cents on 4 January 2018 to 1 cent on 4 January 2019. But over the past five days, the scrip has soared by 42.86%. Today, the price was down by 10% and is currently trading at 0.9 cents per share with the day's total traded volume of 6,101,095. The company has ~482.36 million shares outstanding with the market cap of circa $4.82 million. It has a 52-week high and low of 3.4 cents and 0.6 cents respectively.


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