Arika Resources (ASX:ARI) has addressed an inquiry from the ASX regarding its recent market disclosure and the impact of exploration results on its securities.
The inquiry followed fluctuations in ARI's stock price and trading volume. The company confirmed that it considers the exploration results announced on 7 March to have a material effect on its stock price.
ARI first became aware of these results on 14 February but delayed public disclosure until the data was complete and accurate. Arika noted the need for comprehensive data analysis before a public announcement.
“Reporting of selected information such as isolated assays, without placing them in perspective, is unacceptable,” said Aaron Gates, Joint Company Secretary of Arika Resources.
The company reiterated its compliance with ASX Listing Rules, emphasising that the information was disclosed promptly and in context to ensure accuracy.
The exploration results were part of a comprehensive 44-hole drilling program, which required careful validation.
Arika Resources has assured both the ASX and investors of its adherence to continuous disclosure obligations, with the company's board authorising the correspondence.