Former mining exec found guilty of insider trading on Minotaur’s big copper-gold find
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The former boss of a previous partner of junior explorer Minotaur Exploration has been found guilty of insider trading.
Darren Lind was sentenced to a maximum of 18 months in prison, with a minimum of 9 months custodial term to be served, after a two-week trial.
He was found guilty of two counts of insider trading in shares in ASX-listed Minotaur (ASX:MEP).
Insider trading is where someone with access to confidential information uses their knowledge to trade stock in a company to their advantage.
Mr Lind was a former managing director of Golden Fields Resources, which had a joint venture partnership with Minotaur to explore for copper and gold at its “Eloise” project in Queensland.
The Australian Securities and Investments Commission (ASIC) alleged Mr Lind had come into possession of inside information regarding the copper and gold discovery during a meeting with Minotaur personnel on July 25, 2014.
After Minotaur broke the news of the new find at the end of July 2014, its share price doubled.
Shares were trading at 14c the day before the announcement was made and spiked to a high of 28c a day after the news.
“Such offending cannot be characterised as victimless and it is properly described as a form of cheating,” Judge Joanne Tracey said during sentencing.
“Other traders did not have the same opportunity to profit as you did and, speaking more generally, such offending undermines the integrity of the market and brings with it a loss of faith in the system.
“This type of offending is difficult to detect and to investigate.”
Stockhead has contacted ASIC to find out just how much insider trading goes on in the mining industry.
Mr Lind has appealed against his conviction and a hearing is set to be held on March 15 in the Supreme Court of South Australia.