Errawarra Resources Ltd (ASX: ERW) Responds to ASX Price Query
Response to ASX Inquiry
Errawarra Resources Ltd (ASX: ERW) has responded to a price query letter from the ASX regarding a notable increase in the trading price and volume of its securities. The company’s share price surged from $0.061 to an intraday high of $0.105, prompting the ASX to seek clarification on potential undisclosed information affecting trading.
Joint Venture Transaction
In its response, Errawarra confirmed it was engaged in advanced discussions for a potential joint venture transaction at the time of the price query. However, the company believes this information does not account for the recent trading changes and clarified that it regularly explores transaction opportunities that align with its strategic goals and enhance shareholder value.
As part of this dialogue with ASX, Errawarra announced that it executed a joint venture transaction on 27 November 2024 and has complied with Listing Rules throughout this process.
Market Speculation
Further context provided by Errawarra indicated that speculative trading might have been influenced by a trading halt initiated by Raiden Resources Ltd (ASX: RDN), a neighbouring exploration company, due to pending drilling results. This proximity appears to have led to speculative activity impacting ERW’s share price.
Compliance Confirmation
The Executive Chairman, Thomas Reddicliffe, stated, “We are committed to adhering to ASX disclosure standards and aim to communicate transparently with our investors.” ERW has confirmed compliance with Listing Rule 3.1 and ensured that its responses have received the necessary approvals.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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