21st Mar 2016 10:37
LONDON (Alliance News) - Natural resources investment company Leed Resources PLC on Monday said it has injected AUD250,000 into Australian miner High Mannor Pty Ltd to provide working capital and said fraudulent activity has been uncovered at the company.
Leed entered a deal in February to secure an option which includes the right to acquire 100% of High Mannor from owner Battallion International Ltd.
Leed said that, over the course of conducting due diligence on High Mannor, it was discovered a senior member of staff had been carrying out fraudulent activities, which appears to have hit the profitability of High Mannor over the past few months.
High Mannor is now seeking to quantify the loss caused, and the person involved has been dismissed from his role, with the information passed to local police in Australia.
Leed is now holding talks with High Mannor management over how to ensure stronger controls are in place going forward.
Leed shares are currently suspended as the High Mannor deal constitutes a reverse takeover.
By Sam Unsted; [email protected]; @SamUAtAlliance
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