The ASX said Jan. 8 that it will remove Hardey Resources Ltd. from the bourse after uncovering a series of questionable disclosures and a breach of listing rules related to the acquisition of the Nelly vanadium mine in Argentina, as well as the purchase of six assets held by Vanadium Mining Pty. Ltd.
In a lengthy statement, the ASX found that Adam Blumenthal's Everblu Capital and its associates were the major beneficiaries from the two transactions, while Everblu had worked to conceal its involvement from both the ASX and Hardey shareholders.
The investigation found that Hardey was prepared to pay Blumenthal and Everblu between 52.55% and 64.6% of the shares and options paid for the assets for a "mere introduction" to the assets' vendors.
Hardey, as well as Blumenthal and Everblu, failed to sufficiently explain the rationale behind the large payout in connection to the transactions.
The ASX considered reversing the transactions, but the deals' completions have made it difficult to "unscramble the egg," the exchange said.