Mount Ridley Mines has told ASX it holds no unreleased exploration results that explain its share price rise, while confirming three testwork programs remain in progress. The company also disclosed that an institutional investor had approached it about participating in its current capital raising.
- Shares rose from $0.037 to an intraday high of $0.049
- No unreleased exploration results identified as the cause
- Phase 2 re-assays and Selectro results expected within 1-2 weeks
- Flotation testwork results expected in October-November
- Institutional investor approached to join the capital raising
ASX Queries Mount Ridley Price Spike
Mount Ridley Mines Ltd (ASX:MRD) has denied holding undisclosed information that could explain a sharp move in its shares, after ASX queried the stock’s rise from a close of $0.037 on 4 September to an intraday high of $0.049 on 8 September.
The company said it was not aware of any specific explanation for the trading, while pointing to an approach from an institutional investor seeking to participate in the capital raising announced on 4 September. Mount Ridley said no change to the raising’s terms or quantum was intended at this stage.
Three Technical Programs Still Await Results
The response makes clear that technical news is pending, but not yet available to the market. Phase 2 of a re-assay program at the Grass Patch Complex involved 2,280 samples delivered on 29 July and was described as close to completion, with results expected within one to two weeks.
Flotation testwork began after samples were delivered on 18 August, with results expected in October or November. The company said the work is intended to validate findings from TIMA mineralogical analysis. A final test from the initial Selectro™ metallurgical program is also outstanding, with results expected within one to two weeks after samples were sent to the laboratory on 27 May.
Company Confirms Disclosure Controls
Mount Ridley said it was not in possession of any unreleased assays from the programs. It also confirmed that the underlying diamond and aircore drilling was completed between 2014 and 2022, rather than representing fresh drilling results.
The company told ASX that access to results is restricted to directors, employees and consultants who need the information for their duties. Laboratories are subject to confidentiality obligations, while results are received by the chief technology officer, assessed with the chief executive and escalated for board-approved disclosure if considered material. Mount Ridley confirmed it was complying with ASX Listing Rule 3.1.
Pending Results and Capital Raising Set Next Tests
The disclosure leaves two immediate markers for the stock: whether the re-assay and Selectro results arrive within the company’s stated one-to-two-week window, and whether the institutional approach translates into participation before the capital raising is due to complete on 11 September. Neither the size of the investor’s proposed participation nor the raising’s quantum was disclosed in the response.
Bottom Line?
The price query has removed a rumoured catalyst, but leaves several genuine catalysts unresolved: technical results, flotation work and the outcome of the capital raising.
Questions in the middle?
- Will the Phase 2 re-assay results arrive within the stated one-to-two-week timeframe?
- What will the outstanding Selectro test show about recovery from unbeneficiated ore?
- Will the institutional investor’s approach result in additional participation without changing the raising terms?