The former chief executive of UCL Resources, Christopher Jordinson, has pled guilty to insider trading.
Jordinson has admitted to providing inside information about a takeover of UCL by Mawarid Mining to his new Joe Turner, a move which saw Turner and two others rake in a profit close to $20 000.
It comes after an ASIC investigation in March found that Jodinson told Turner UCL would receive a takeover offer by the end of April, and the UCL shares were likely to spike.
Turner communicated this to his accomplice Jonathon Breen, providing him money to buy UCL shares on his behalf.
They then bought 107 463 shares at 13 cents per share, after which the takeover was announced and the share price jumped to 31 cent, netting the men a profit of $19 343.
“All three men have admitted the information they possessed about UCL was price sensitive and not generally available,” ASIC stated.
The men have pled guilty, and the matter will return to court next month.
Jordinson faces a maximum penalty of 10 years gaol and/or a fine of $765 000.
UCL jointly owns the Sandpiper Marine Phosphate project in Namibia and the Mehdiabad zinc project in Iran.