urg::: Reefton shares hit after police raid

[Len Kanaar - FoE Sydney]

Melbourne Herald Sun

Reefton shares hit after raid
Richard Owen
15sep05

SHARES in uranium prospector Reefton Mining NL plunged almost 25 per 
cent yesterday after Australian Federal Police raided its Perth 
offices as part of an investigation into claims of insider trading 
and misleading the market.

Reefton, which hit a high of 17.5c in March after reporting its 
Erongo uranium "discovery" in Namibia, has since gone into meltdown 
and closed down a further 0.7c or 18.4 per cent at 3.1c yesterday on 
heavy turnover of 22 million units.

The Australian Securities and Investment Commission is investigating 
suspected breaches of the Corporations Act between July 2004 and 
April 2005 relating to continuous disclosure requirements, giving 
misleading information to the market and insider trading.

Following a referral from the Australian Stock Exchange, ASIC and the 
AFP also raided the homes of several current and former company 
office holders.

But Reefton chairman Bradley Moore said in a statement the company 
was comfortable with legal advice taken on the matter.

"This indicates that on the information available to the company, 
there has been no contravention by the company of any of the sections 
of the Corporations Act listed," he said.


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