MANTENGU Mining, a R171m chrome miner, today published incendiary allegations its share price had been manipulated and that the Johannesburg Stock Exchange (JSE) had turned a blind eye to its complaints as it was protecting an illegal trading syndicate.
The JSE denies the allegation contained in a detailed affidavit which forms the basis of a formal criminal complaint, signed off by Mantengu CEO Mike Miller. In the document, Miller alleges his former CFO Ulrich Bester was the key perpetrator behind the share price manipulation.
Bester, who is a director of Liberty Coal and Liberty Coal Terminals, and has a 3.8% stake in Mantengu, is to defend himself “in his personal capacity”, said Liberty Coal in a response this afternoon. In its rebuttal, Liberty Coal said Miller was a “delusional fantasist” seeking explanations for the underperformance of Mantengu’s share price.
Key to Miller’s claims is that Bester sought to frustrate Mantengu’s proposed acquisition in October of Blue Ridge, a dormant platinum group metal (PGM) mine owned by Sibanye-Stillwater.
The affidavit, which has been submitted to the Hawks, describes how Bester’s alleged motive was to suppress Mantengu’s share price such that its proposed purchase of Blue Ridge required the maximum regulatory compliance.
Transactions worth 30% or more of the buyer’s market value would have required onerous demands of Sibanye-Stillwater which may then have cancelled the deal.
Prior to Mantengu’s share price being manipulated by Bester – principally between April and June last year – Bester was establishing control over another listed Sable Exploration and Mining (SEAM), run by former market analyst James Allan.
In return for cash injection via a R52m rights issue in 2023, Bester won control of SEAM and forced Allan out of the company with the aim of it becoming Liberty Coal’s vehicle for a Blue Ridge offer in competition to Mantengu.
Sibanye-Stillwater had previously declined to deal with Liberty Coal owing to reputational issues, Miller told Miningmx in an interview.
In its response, Liberty Coal acknowledged it had had an initial interest in Blue Ridge, but had subsequently decided it was not financially viable.
Miller and Mantengu had until the close of business on May 12 (Monday) to publicly retract its allegations and “tender an apology” to Liberty Coal, it added. Liberty Coal also intended to sue Miller and Mantengu for defamation.
JSE
Commenting on Mantengu’s allegation regarding JSE complicity with share price manipulation claims, JSE’s legal counsel Louis Cockeran said none of the JSE executives mentioned in the affidavit “were part of any of the transactions”.
However, the JSE had referred Mantengu’s share price manipulation complaint to the Financial Sector Conduct Authority (FSCA) for investigation.
Gehard van Deventer, divisional executive for enforcement at FSCA told Miningmx the investigation was complete. “We fully investigated that, absolutely fully investigated it,” said Van Deventer. “ I just can’t I can’t tell you the outcome because we have to consider the outcome. That’s where we are.”
Van Deventer said claims the JSE was involved in covering up the syndicate was a new claim that didn’t fall under its investigation. Cockeran described the claims the JSE was in league with a syndicate as “wild”.
Miller said the company continued to work with Sibanye-Stillwater, as well as the Department of Mineral Resources regarding finalisation of regulatory controls to transfer the asset in terms of Section 11 of the MPRDA.
