CML responds to ASX on disclosure timing after share price spike

ASX Queries CML on Disclosure Timing Amid Share Price Surge

Connected Minerals Limited (ASX:CML) has responded to an ASX aware letter questioning the timing of its announcement regarding a binding conditional acquisition of Frontier Group CRM Pty Ltd, which holds an 80% interest in the Bailundo licence in Angola, and a linked $4.5 million capital raising. The ASX's scrutiny was triggered by a 40% jump in CML's share price and increased trading volumes in late April, before the company’s formal disclosure on 4 May 2026.

CML confirmed it considers both the acquisition and the capital raising to be material information likely to affect its share price. However, the company explained the binding agreement for the transaction was only executed on 2 May 2026, with the capital raising terms finalised the day before. Until those dates, the transaction was subject to ongoing negotiations and confidentiality protocols, which CML argues justified withholding the announcement despite market speculation.

Confidentiality and Incomplete Negotiations Cited as Disclosure Justification

The company detailed that initial discussions with Frontier Group representatives began before September 2025, when CML lodged a Chapter 11 submission with the ASX outlining draft transaction terms. Despite this early engagement, CML maintained the transaction was incomplete and confidential until the formal binding sale and purchase agreement (SSA) was signed on 2 May 2026.

In the days leading up to the announcement, CML observed unusual share price and volume movements but did not identify these as driven by leaked transaction details. To manage market integrity, the company proactively requested a trading halt on 28 April and a voluntary suspension on 30 April, ahead of the public release. CML emphasised that the SSA’s execution postdated these market interventions, underscoring its position that the transaction was not yet firm enough to warrant disclosure.

Capital Raising Tied to Transaction and Announced Concurrently

The $4.5 million capital raising, intended to accelerate exploration of the Bailundo carbonatite complex’s niobium and rare earth mineralisation, was confirmed only after signing a lead manager mandate on 1 May 2026. Given the capital raising’s direct link to the acquisition, CML chose to announce both simultaneously on 4 May 2026, aligning with continuous disclosure obligations.

This approach aligns with the company's recent strategic moves, including the acquisition of the Bailundo project, which boasts high-grade mineralisation near surface and is positioned strategically near the Lobito Corridor export route. The capital raise is expected to fund systematic exploration and resource definition efforts at this emerging critical minerals jurisdiction, as highlighted in CML’s earlier update on 4 May 2026 Acquisition of 80% interest.

CML Affirms Compliance with ASX Listing Rules

In its formal response, CML confirmed full compliance with ASX Listing Rule 3.1 regarding continuous disclosure. The company’s board or delegated officers authorised the responses, reinforcing adherence to its published disclosure policy. CML’s stance is that the transaction and capital raising were not sufficiently definite to require earlier announcement, and confidentiality was maintained throughout negotiations.

While market movements prior to disclosure raised eyebrows, CML’s request for trading halts and voluntary suspension demonstrate proactive steps to manage information flow and maintain orderly trading conditions. This episode underscores the delicate balance mining explorers face between confidentiality during deal-making and regulatory demands for timely disclosure.

Investors will be watching how Connected Minerals deploys the capital to advance exploration at Bailundo, as well as any further regulatory feedback on disclosure practices. The company’s ability to convert this significant acquisition into tangible resource milestones will be critical to sustaining market confidence after this compliance scrutiny.