Securities Trading Policy
Released
Released
Announcement PDF
Document ID [VG-CORP-POL-0013] Revision No. Rev 0 Issue Date
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ACN 691 820 532
Securities Trading Policy
Valiant Gold Limited – Securities Trading Policy
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1 Introduction
1.1 Purpose
(a) This securities trading policy (Policy) sets out the Valiant Gold Limited’s
(Company) policy regarding its directors, officers, employees, consultants and
contractors (irrespective of location) who Deal or may Deal in Company
Securities and should be read in its entirety.
(b) The purpose of this Policy is to:
(i) provide a summary of the law on insider trading in Australia;
(ii) outline the prohibitions on Dealing in Company Securities to prevent
the misuse of unpublished information which could materially affect the
value of such securities;
(iii) ensure that the reputation of the Company, its directors, officers,
employees, consultants and contractors is not adversely impacted by
perceptions of Dealing in securities at inappropriate times; and
(iv) achieve high standards of corporate conduct and support market
confidence in the integrity of Dealing in Company Securities.
1.2 Source of Legal Obligations
The sources of legal obligations underpinning this Policy include:
(a) the Corporations Act 2001 (Cth) (Corporations Act), which, among other
things, prohibits insider trading by anyone (regardless of geographical location);
and
(b) the ASX Listing Rules, ASX Guidance Note 27 (Trading Policies) and the ASX
Corporate Governance Principles and Recommendations, which set out
requirements for responsible trading in listed company shares.
2 Insider trading prohibition – the law
It is an offence under the Corporations Act to (among other things) Deal using Inside
Information, procure or encourage (when in possession of Inside Information) another
person to deal in Company Securities or communicate Inside Information to others who
will, or are likely to, Deal on the Inside Information (or procure another person to Deal
on the Inside Information).
3 Dealing in Company Securities
3.1 When a Designated Person MAY Deal
A Designated Person may Deal in Company Securities unless restricted from doing so
under clause 3.2(a) or clause 3.2(b) (When a Designated Person May Not Deal) or
under applicable laws.
Valiant Gold Limited – Securities Trading Policy
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3.2 When a Designated Person MAY NOT Deal
(a) Subject to clauses 4.1 to 4.2(g) (Exceptions), a Designated Person may not
Deal in Company Securities during the following designated Black-out Periods:
(i) from the close of the ASX trading day two weeks prior to, and until
10:00am (Sydney time) on the ASX trading day following, the release of
the Company's quarterly reports (if applicable);
(ii) from the close of the ASX trading day two weeks prior to, and until
10:00am (Sydney time) on the ASX trading day following, the release of
the Company's half-year results;
(iii) from the close of the ASX trading day two weeks prior to, and until
10:00am (Sydney time) on the ASX trading day following, the release of
the Company's Annual Report; and
(iv) any other period determined by the Chairperson in consultation with the
Company Secretary to be a Black-out Period from time to time.
(b) In addition to the restrictions in clause 3.2(a), a Designated Person may not
Deal in Company Securities at any time if he or she has:
(i) information that he or she knows, or ought reasonably to know, is Inside
Information; or
(ii) not complied with clauses 5.1(a) to 5.3(b) (Approval and notification
requirements).
3.3 When employees, consultants or contractors (other than a Designated Person)
MAY Deal
An employee, consultant or contractor (who is not a Designated Person) may, at any
time, Deal in Company Securities if he or she does not have information that he or she
knows, or ought reasonably to know, is Inside Information and provided such Dealing
otherwise complies with applicable laws.
3.4 When employees, consultants or contractors (other than a Designated Person)
MAY NOT Deal
An employee, consultant or contractor (who is not a Designated Person) who has
information that he or she knows, or ought reasonably to know, is Inside Information
may not:
(a) Deal in Company Securities;
(b) advise, procure or encourage another person to deal in Company Securities;
or
(c) pass on information to any person if they know, or ought reasonably to know,
that the person may use the information to Deal in (or procure another person
to Deal in) Company Securities.
Valiant Gold Limited – Securities Trading Policy
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4 Exceptions
4.1 Permitted dealings
Subject to not being in the possession of Inside Information and subject to complying
with all applicable laws, a Designated Person may at any time:
(a) transfer Company Securities already held into a superannuation fund or other
saving scheme in which the Designated Person is a beneficiary;
(b) invest in, or trade in units of, a fund or other scheme (other than a scheme only
investing in Company Securities) where the assets of the fund or scheme are
invested at the discretion of a third party;
(c) undertake to accept, or accept, a takeover offer;
(d) participate in an offer or invitation made to all or most security holders, including
a rights issue, equal access buy-back, security purchase plan or dividend or
distribution reinvestment plan, where the timing and structure of the offer or
invitation has been approved by the Board. This includes decisions relating to
whether or not to take up the entitlements and sale of entitlements required to
provide for the take up of the balance of entitlements under a renounceable pro
rata issue;
(e) exercise (but not Deal with the securities following exercise) an option or right
under an employee incentive scheme where the final date for the exercise of
the option or right falls during a Black-out Period or the Company has had a
number of consecutive Black-out Periods and the Designated Person could not
reasonably have been expected to exercise it at a time when free to do so;
(f) acquire (but not Deal with the securities following acquisition) Company shares
by conversion of financial instruments giving rights to conversion to shares (e.g.
options or convertible securities) where the final date for the conversion of the
security falls during a Black-out Period or the Company has had a number of
consecutive Black-out Periods and the Designated Person could not
reasonably have been expected to exercise it at a time when free to do so;
(g) acquire Company securities under a bonus issue made to all holders of
securities of the same class;
(h) acquire Company securities under a dividend reinvestment, or top-up plan that
is available to all holders of securities of the same class;
(i) acquire, or agree to acquire or exercise options under a Company employee
share plan;
(j) withdraw ordinary shares in the Company held on behalf of the Designated
Person in an employee share plan where the withdrawal is permitted by the
rules of that plan;
(k) acquire ordinary shares in the Company as a result of the exercise of options
held under an employee share scheme; or
(l) where the Designated Person is a trustee, trade in the securities of the
Company by that trust, provided the Designated Person is not a beneficiary of
Valiant Gold Limited – Securities Trading Policy
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the trust and any decision to trade during a Black-out Period is taken by the
other trustees or by the investment managers independently of the Designated
Person.
4.2 Approval to dispose or transfer Company Securities in exceptional
circumstances
(a) Subject to compliance with applicable laws, in exceptional circumstances a
Designated Person may seek written approval from the Chairperson (Approval
Officer) to dispose of or transfer (but not acquire or otherwise Deal with)
Company Securities during a Black-out Period (Disposal Consent).
(b) The Approval Officer will act with caution in determining whether there are
exceptional circumstances, which may include, but will not be limited to, where:
(i) the Designated Person is in severe financial hardship and a pressing
financial commitment cannot be satisfied otherwise than by disposing of
Company Securities; or
(ii) the Designated Person is required by a court order, or there are court
enforceability undertakings, to transfer or dispose of Company
Securities or there is some other overriding legal regulatory requirement
for them to do so.
(c) A Designated Person seeking Disposal Consent based on clause 4.2(b)(i) must
provide the Approval Officer with:
(i) a written application stating all of the facts; and
(ii) copies of relevant supporting documentation, including contact details
of the Designated Person's accountant, bank and other such
independent institutions (where applicable).
(d) A Designated Person seeking Disposal Consent based on clause 4.2(b)(ii)
must provide the Approval Officer with a written application accompanied by
relevant court and/or supporting legal documentation (where applicable).
(e) The Approval Officer may grant Disposal Consent to a Designated Person:
(i) only if that Designated Person is not in possession of Inside Information;
and
(ii) on such terms and conditions (including the duration of the right to
dispose or transfer) as considered reasonable in the circumstances by
the Approval Officer.
(f) The Approval Officer will notify the Board of any Disposal Consent granted to a
Designated Person.
(g) A Disposal Consent, if granted, will be issued in writing to the Designated
Person and will contain a specified time period during which the disposal or
transfer can be made.
Valiant Gold Limited – Securities Trading Policy
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5 Approval and notification requirements
5.1 Approval requirements
(a) Any Designated Person (other than the Chairperson) wishing to Deal in
Company Securities must obtain the prior written approval of the Chairperson
or the Board before doing so.
(b) If the Chairperson wishes to Deal in Company Securities, the Chairperson must
obtain the prior approval of the Board before doing so.
5.2 Approvals to Deal
(a) All requests to Deal in Company Securities as referred to in clauses 5.1(a) and
5.1(b) must include the intended volume of securities to be Dealt in and an
estimated time frame for the Dealing.
(b) Copies of written approvals must be forwarded to the Company Secretary prior
to the approved Dealing.
5.3 Notification
(a) Subsequent to approval obtained in accordance with clauses 5.2(a) and 5.2(b),
any Designated Person who Deals in Company Securities must notify the
Company Secretary in writing of the details of the transaction within two
business days of the Dealing occurring.
(b) The notification obligation in clause 5.3(a) operates at all times but does not
apply to acquisitions of shares or options by employees made under employee
share or option schemes, nor does it apply to the acquisition of shares as a
result of the exercise of options under an employee share scheme.
(c) The Company Secretary will ensure that all necessary disclosures regarding
Dealings in Company Securities are made to the ASX and other regulatory
bodies based on the information provided by Designated Persons.
6 Other restrictions
6.1 Incomplete Buy or Sell Orders
(a) Buy or sell orders for Company Securities which are placed but not completed
outside of a Black-out Period are subject to the following restrictions once the
Black-out Period commences:
(i) the order must be completed within five trading days otherwise it will
lapse; and
(ii) the order cannot be varied.
(b) Any order subject to this procedure should be notified in writing to the Company
Secretary within 24 hours of the Black-out Period commencing.
Valiant Gold Limited – Securities Trading Policy
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6.2 Derivatives
(a) The Company prohibits the use of Derivatives in relation to unvested equity
instruments, including performance share rights, and vested Company
Securities that are subject to disposal restrictions (such as a 'Holding Lock').
(b) Derivatives may, subject to the approval of the Chairperson (or in relation to the
Chairperson, subject to approval of the Board) and subject to compliance with
the law and the other provisions of this Policy, be used in relation to vested
positions which are not subject to disposal restrictions.
6.3 Prohibition on Margin Loan Arrangements
Designated Persons may not:
(a) enter into a Margin Loan or similar funding arrangement to acquire any
Company Securities; or
(b) use Company Securities as security for a Margin Loan or similar funding
arrangement.
6.4 Securities of other Companies
The prohibitions in the Corporations Act against insider trading applies equally to where
Inside Information is being held by a person about another company or entity. This
may occur, for example, where the Company is negotiating a transaction with another
company or where, in the course of negotiating a transaction with the Company,
another entity provides confidential information about itself or another entity.
Accordingly, if a person possesses Inside Information in relation to the securities of
another entity, they must not Deal in those securities.
7 Penalties
(a) Insider trading is a criminal offence. A person who commits a breach of the
insider trading provisions could be subject to both civil and criminal penalties
for the individual and for the Company.
(b) Any person contravening this Policy will be regarded as having been engaged
in serious misconduct and will be subject to disciplinary action, including
possible termination of a person's employment or appointment.
(c) In addition, the insider trader, and any other persons involved in the
contravention, may also be liable to compensate third parties for any resulting
loss.
8 Policy compliance
(a) During the year the Company may require confirmation from Designated
Persons that they have complied with this Policy. The Company may also
require confirmation (or declarations) of holdings in securities. All such
requested information must be supplied within five business days of the request
being made.
Valiant Gold Limited – Securities Trading Policy
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(b) A breach of this Policy will be regarded very seriously and may lead to
disciplinary action being taken (including termination of employment). If the
Company becomes aware of any breach of this Policy, then the Company may
report such breach to the Australian Securities and Investments Commission.
(c) If an individual is in any doubt regarding their proposed Dealing in securities,
they should contact the Company Secretary.
9 Publication
This Policy will be made available from the Company website at
https://www.valiantgold.com.au/.
10 Review
This Policy shall be reviewed annually by the Board to ensure that it is operating
effectively and ascertain whether changes are required to this Policy.
11 Definitions
In this Policy, the following definitions apply:
Company Securities includes shares, options, warrants, derivatives and
interests in shares (including vested options and vested
performance share rights) linked in any way to the
underlying price of shares in the Company.
Black-out Periods means a relevant period as defined by the Company
when Designated Persons may not Deal in Company
Securities.
Dealing includes:
(a) applying for, acquiring or disposing of securities;
(b) entering into an agreement to apply for, acquire
or dispose of, securities; and
(c) granting, accepting, acquiring, disposing,
exercising or discharging an option or other right
or obligation to acquire or dispose of securities.
Derivatives include:
(a) derivatives within the meaning given in section
761D of the Corporations Act (such as options,
forward contracts, swaps, futures, warrants, caps
and collars); and
(b) any other transaction in financial products or
hedging arrangement or other arrangement
which operates to limit (in any way) the economic
risk associated with holding the relevant
securities.
Valiant Gold Limited – Securities Trading Policy
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Designated Persons means each of:
(a) the Directors of the Company;
(b) any person who by their role or otherwise,
becomes aware of Inside Information by having
access to confidential material which may
contain potentially price sensitive information
including the Company board papers, periodic
disclosure materials or any other relevant
document; and
(c) in relation to those persons identified in
paragraphs (a) and (b) above, the following
people are also deemed to be Designated
Persons:
(i) their spouse or any of their children
(including step children) under the age of
18 years;
(ii) a trust of which they, any members of
their family, or family-controlled company
are a trustee or beneficiary; and
(iii) a company which they or their family
control.
Inside Information means information which is not generally available to the
market and, if it were generally available to the market,
would be likely to have a material effect on the price or
value of securities. Annexure A provides further details
about what constitutes Inside Information.
Margin Loan means any lending or similar arrangement allowing a
person to borrow money to invest in securities using
existing investments as security.
Valiant Gold Limited – Securities Trading Policy
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Annexure A to the Securities Trading Policy
Valiant Gold Limited
Inside Information
1 'Inside information' means information which is not generally available to the market
and, if it were generally available to the market, would be likely to have a material effect
on the price or value of securities.
2 Information is considered to be generally available if:
(a) it consists of readily observable matter; or
(b) it has been made known in a manner likely to bring it to the attention of investors
in securities and a reasonable period for dissemination of that information has
elapsed; or
(c) it may be deduced, inferred or concluded from the above.
3 Information will be generally available if it has been released to the ASX, published in
an Annual Report or prospectus or otherwise been made generally available to the
investing public and a reasonable period of time has elapsed after the information has
been disseminated in one of these ways.
4 For the purposes of the insider trading provisions of the Corporations Act, information
is defined broadly and includes matters of supposition and other matters which are
insufficiently definite to warrant being made known to the public. It also includes
matters relating to the intentions of a person.
Material Effect on the Price of Securities
5 Information is considered by the Corporations Act to be likely to have a material effect
on the price or value of securities of a company if the information would, or would be
likely to, influence persons who commonly invest in securities in deciding whether or
not to subscribe for, buy or sell those securities.
6 It is not possible to list all of information that may be material, however, the following
types of information would each be likely to be considered to have a material effect on
the Company's share price:
(a) information regarding a material increase or decrease in the Company's
financial performance from previous results or forecasts, such as changes to
profit results;
(b) significant exploration drilling results;
(c) new or updated JORC ore reserve or mineral resource calculations;
(d) a proposed material business or asset acquisition or sale;
(e) the damage or destruction of a material operation of the Group;
(f) proposed material legal proceedings to be initiated by or against the Company;
(g) regulatory action or investigations undertaken by a Government authority;
Valiant Gold Limited – Securities Trading Policy
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(h) the launch of a new business or material new product; or
(i) a proposal to undertake a new issue of securities or major change in financing.
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