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LONDON (Alliance News) - Bushveld Minerals Ltd on Friday said it has accepted the findings of an investigation and agreed settlement terms relating to an AIM rule breach.
The London Stock Exchange determined a public censure of the company as well as a GBP700,000 fine for breach of AIM rules 11 and 31.
This fine will be discounted to GBP490,000 upon early settlement and Bushveld said it has agreed to the settlement terms. The vanadium producer said that it intends to pay the fine through its internal resources.
AIM rule 11 states that a company must issue notification of any new developments that are not public knowledge and may lead to significant stock movements.
Rule 31 states that AIM companies are responsible for compliance with AIM rules and must seek advice from their nominated advisor regarding compliance, providing said advisor with any information requested or required.
"The company's actions were informed by an intent to protect the economics of its shareholders and avoid unnecessary dilution, in a transaction it saw as transformational. However, the company acknowledges that if it had engaged more fully with its nominated adviser as required under the AIM rules, it could have met its regulatory obligations whilst also meeting its commercial objectives," said Bushveld Independent Non-Executive Chairman Ian Watson.
Bushveld Chief Executive Fortune Mojapelo also commented on the rule breach.
"The company has expressed regret in relation to the breaches arising from these matters and reiterates that it takes its AIM rules obligations seriously and has put in place measures to ensure that the events giving rise to these breaches are not repeated in the future," Mojapelo said.
Shares in Bushveld were down 1.7% at 41.28 pence on Friday.