Padbury shares dive as trading resumes
PERTH (miningweekly.com) – The share price of ASX-listed Padbury Mining fell by more than 84% on Friday as the company resumed share trading, following the collapse of its billion-dollar funding deal for the Oakajee port and rail facility, in Western Australia.
Padbury shares have been suspended from trading since early April, as the company considered releasing the details of its $6.5-billion funding package secured from private Australian equity investors.
Despite high hopes that the funding package would allow for the development of the long-awaited Oakajee port and rail project, Padbury and investors Alliance Super Holdings and its parent company Superkite this week terminated the agreement.
Meanwhile, in a letter to the ASX, Padbury said that the contents and parameters of the proposed funding package should no longer be of interest to either the ASX or to shareholders, as the agreement had been terminated.
The ASX and the Australian Securities and Investment Commission had launched investigations into the transaction, with both parties calling for further documentation on the deal.
When share trading resumed on Friday, the stock opened at A$0.006 apiece, but reached a low of A$0.004 a share before closing at A$0.005 a share in the afternoon.
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