Padbury Shares Plunge

Saturday, May 3rd, 2014
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Shares in Padbury Mining have plummeted 85 per cent after the cancellation of a funding agreement for its Oakajee port project in Western Australia.

The company’s shares had been in a trading halt for three weeks after it told the market it had secured a $US6.5 billion ($A7.03 billion) funding agreement for construction of a deepwater port and associated rail network at Oakajee.

But on April 30 it announced it had terminated that agreement.

Padbury shares resumed trading on Friday and, at 1135 AEST, were down 2.8 cents, or 84.9 per cent, at 0.5 cents. When the company announced on April 11 it had secured the funding for Oakajee, its shares gained 1.3 cents, or 65 per cent.

Share market operator ASX has issued the company with a long list of queries about the funding deal, and how it was announced to the market.

In response, the company said it will bring in a law firm to review its corporate governance policies and ASX disclosure processes, and conduct a training program for its staff.

This work would begin in coming days and was due to be completed within three months, Padbury said.

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